As the SFC issues another warning against an unlicensed company, the regulator urges the investors to stay cautious and not to have business with the blacklisted entities. What are the reasons behind the SFC warning?
30 August, AtoZForex – Hong-Kong’s financial regulator issues warnings against the fraudulent firms as a part of its regulatory activity. Today the Securities and Futures Commission (SFC) have added IEA Holdings to its Alert list.
SFC warning against IEA Holdings: details
The SFC has listed the brokerage under the category of Unlicensed Entities due to lack of firm's authorization. IEA Holdings claims to be located at 9th Floor, Silvercord Tower 2, 30 Canton Road, TST, Kowloon, Hong Kong. However, according to the regulator, the company is not located there. Apparently, the firm is somehow associated with Shandong East Asia Mining Group Co. Ltd, another unlicensed entity on the SFC’s Alert List. The broker’s website www.ieaholdings.com is currently down, possibly after the warning of the watchdog.
See also: SFC warning against CVC Groups Private Capital
Scammed client
One of the clients who invested his money with IEA Holdings has revealed his case. The representative of the company claimed to be a professional and explained the investment in straightforward terms. The presented deal offered a monthly return of 9% in case the client would invest his funds in a coal mining project in China. The project was supposed to run for 6 years, however since investing the money the customer received only one dividend payment.
Later the representative of the company has allegedly contacted the client about another customer who was offering three times more of what was paid for the client’s investment initially. However, after the sale agreement was made, the promised funds weren’t received. The IEA Holdings allegedly has not responded to numerous phone calls made by the client.
The SFC informs the potential investors by drawing their attention to illicit operations and unauthorized entities. The investors should not deal with those businesses due to the high risks. The SFC warning against the IEA Holdings is an example of the regulator’s efforts to inform public about the fraudulent firms and potential risks they bring.
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