The Securities and Exchange Commission is cautioning the public against transacting businesses with investment firms, Golden Empire and Loom.

Director General of the Commission Rev Ogbamey Tettey explains the two institutions are unlicensed.

The regulator of the money market insists the public needs to be weary of such institutions to avoid being scammed.

Rev Tetteh says the commission has received complaints and notification about the possible scam and intends to deal with the issue as soon as possible.

“We have received some notification at the usual channel by which people notify us of these scams. And we follow our usual due process in advising clients,” he said.

Menzgold saga

The warning comes at a time when the customers of gold dealership firm Menzgold are berating government for how it handled the collapse of the firm.

Thousands of people now have their investments locked up in what is suspected to be a fraudulent business by Nana Appiah Mensah.

The company, which promised over 10% monthly profits to investors has been shutdown with the CEO caught up in another litigation in Dubai.

It is not yet clear what may happen to the funds of the Menzgold customers.

Even though the dust on Menzgold is yet to settle, two new investment companies have popped up with mouthwatering revenue increases.

The Securities and Exchange Commission is advising the potential customers of these two companies to be cautious.

Mr Ogbamey Tetteh therefore called on all investors to always ask questions on what the underlining investment is before getting involved.

“But let me quickly say that it’s important for investors to always ask questions. One of the fundamental questions you should ask before you place your money with any firm is to find out what is the underlining investment, he said.

He further advised investors not to invest in companies that promise high returns.

“If anybody promises you an outrageous return, avoid it…… in any case we’ve indicated that when somebody promises you a high return and tries to tell you that the return is guaranteed, it means that there is a high risk involved. And you are better advised to look for an exit door,” he noted.

By Nana Akua Gyidie