In line with its zero tolerance for fraudulent activities of any sort, the Securities and Exchange Commission, on Tuesday, sealed the office of an alleged illegal fund manager, Avenue to Wealth.

This action, according to SEC, follows several months of complaints by subscribers to the fund of some hidden dealings.

An Assistant Director, Enforcement and Compliance at SEC, Mr. Bernard Ebe, said the commission had to move swiftly to guide against other people falling victim to the scheme.

He explained that usually, for any entity to engage in any manner of fund management, such organisation must as a duty and process of law, register with the commission and anything else would amount to illegal operations.

He said, “These illegal fund managers usually lure people to bring their money to them and in the process they pay dividend or interest as the case may be. From there they pay the initial investors in the scheme.

“However, after the initial investors have brought in a lot of other investors on board the scheme, these illegal fund managers may end up disappearing with such funds and shut their premises, thereby making several investors to lose huge amounts.

“And so when details of the operation of the company came to the commission, we decided to conduct our own investigation, as they are not registered with the commission. Section 153 of the Investment and Security Act states that operators of such fund must obtain licence, to ensure close monitoring by the commission and moreso they are expected to file returns to the commission.”

A pamphlet from the organisation obtained by our correspondent showed that one of the top banks in the country was its banker, even as the fund manager claimed that yield on investment was projected at an average of 20 per cent per annum with a five- year capital holding.

The commission’s move took the combined team of both plain and uniformed police officers from both the commission and the Oduduwa Police command Headquarters in Ikeja, to seal the fund manager’s premises at Olufumilola Okikolu Street off Toyin Street Ikeja.

Four top officials of the firm, including the Managing Director, Mr. Adeolu Akinyemi,were arrested and taken to the Area ‘F’ Police command.

However, one of the officials who claimed to be an advisor to Avenue to Wealth, but who did not disclose his name, said the company registered with the Lagos State Ministry of Agriculture as a Cooperative Society.

Source: Punch (written by Udeme Ekwere)