Latest update April 24th, 2024 12:59 AM
Aug 13, 2020 News
– matter engaging regulators
An investment firm, led by a former Cuban national and which came under the attention of authorities recently, has now applied for an Investment Broker licence.
According to details seen by Kaieteur News, Accelerated Capital Firm Inc. on a letter dated August 5th, applied to Rawle Lucas, Chairman of the Guyana Securities Council, to be a broker.
The application was submitted on Thursday, August 6th, 2020, to the Council.
Chief Executive Officer, Yuri Garcia Dominguez, told the council that he stands by for any questions. He provided a number of phone numbers.
Accelerated would have been busy in the last few months, reportedly collecting tens of millions of dollars from local businesses and others to invest.
The returns on the investments were said to be extraordinary with persons, in the absence of other avenues, grabbing the opportunities.
With commercial banks paying less than three percent for savings, the lure of more than 10 percent returns, in some cases, proved attractive.
However, last week, the situation came to the public’s attention after the Competition and Consumer Affairs Commission (CCAC) warned the public to be aware.
They warned citizens to be careful and not be wooed by get-rich quick schemes.
Kaieteur News had reached out to Accelerated and the CEO who indicated his immediate willingness to come on radio and answer question about the investments.
However, he reportedly changed his mind and said he is now willing for a face-to-face interview.
On Tuesday, in a written statement, the outfit said that Accelerated Capital Firm Inc. (ACF) has been operating in Guyana since 2019.
“This company has been transacting legal and transparent business from its inception with necessary documentation of its existence and operations. With every intention to abide by the laws, rules and regulations of Guyana, Accelerated Capital Firm Inc. reassures the public of its interest in a functioning and amicable relationship. Despite the deterrence of false information and slanderous allegations, the company wishes to engage and re-strengthen its presence in Guyana for the progression of mutually beneficial business relations.”
The company said it wants to assure its members that it will comply with the rules and regulations demanded by the relevant agencies while its attorneys engage them in “meaningful discussions” to facilitate a fast resolution to the matter.
Compensation Plan
“ACF wishes to make it clear that at no time a license to operate was ever denied and efforts will be made to continue to assist our members according to the strategies implemented. ACF wishes to thank all members and students for remaining patient during this unfortunate delay as a result of the pandemic situation. The company has a compensation plan in place for the delays and to those that seek more clarity or details of how to close total relations, we kindly ask that you make contact with our Compliance Department contact information stated on our website to schedule an available appointment.”
The entity said it is working assiduously through its attorneys to resolve all issues at hand.
The Guyana Securities Council declined comment this week only indicating a matter was before it.
Kaieteur News was able to reach Dr. Gobind Ganga who too said, that matter was engaging authorities.
Crime Chief, Wendell Blanhum, was unable to confirm that the matter has been reported to the police, although a number of sources said that the Commissioner of Police was written to.
It was the Securities Council which had issued public notices late last year and then again in January warning about Accelerated.
“The Guyana Securities Council (GSC) wishes to advise the public that Accelerated Wealth Inc, Forex Trading, Yuri Garcia-Dominguez and Ateeka Ishmael are not licensed by the GSC to conduct securities business in Guyana, or to solicit investments from the public, and do not have any securities registered with the GSC that can be legally offered to the public. In addition, the GSC does not have before it any applications from these entities or persons to obtain securities dealers’ licences or to register any of their securities.”
The Council had also advised, in those notices, that the Securities Industry Act 1998 requires all persons conducting securities business or investment advice business in Guyana to be licensed by the Guyana Securities to do so. The Act also requires that securities must be registered by the Guyana Securities Council before they can be offered to the public.
The Council had asked person who invested to contact them.
At least one bank, worried by stringent anti-money laundering laws, had reported closed bank accounts of one outfit.
Kaieteur News was told that it had to do with absence of key paper works.
Bank of Guyana warns
On Tuesday also, the Bank of Guyana, as a regulator, said that it has been brought to the attention of the bank that persons and entities not registered with them or the Guyana Security Council are holding themselves out to the public as investment brokers, and offering financial products with extraordinarily high rates of returns in excess of 10 percent.
“The Bank would like to advise the public to invest only through entities registered by the BOG and GSC. Companies registered with BOG which are authorized to conduct investment business for the public are: 1) Hand In Hand Trust Co. Inc; 2) Trust Company Guyana Limited and Guyana Americas Merchant Bank.”
The notice was issued by Dr. Ganga.
On Friday, the CCAC, in a statement expressing worry, advised citizens to be wary of pyramid and Ponzi schemes which are disguised as legitimate investments.
“The warning from CCAC is being issued in the wake of several enquiries made to the Commission about the investment “scams”. The Commission has also been told of approaches made to persons with the “get rich quick” through investing in these groups that will earn them multiple times their investment. Part of the scheme is for them to also engage in continuous recruitment of persons to join this pyramid scheme.”
The regulator said that consumers need to note that “essentially, the foundation on which the pyramid scheme is built is the problem. Any plan that offers commissions for recruiting new members will inevitably collapse. The real casualties in the collapse are always the people in the bottom, with the people at the top of the pyramid protected.”
CCAC advised: “Insist on taking your time to think over a decision to join. Talk it over with a knowledgeable friend, an accountant or lawyer. In the case of the “investment” Ponzi schemes, the CCAC reminds consumers about an advisory issued in October 2019 by the Guyana Securities Council warning persons about fraudsters fleecing unsuspecting persons by asking them to invest in business in the securities market but are not licensed to so do by the Council,” the commission said.
“In this case, consumers are advised to check with the Securities Council before making any investment. The CCAC encourages consumers to do thorough research before becoming entangled in any of these schemes. If you think you have been scammed please contact the CCAC to investigate.”
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