SEC says stay away from Ronghui securities offers

The Securities and Exchange Commission (SEC) has warned investors about entering into investment contracts with Ronghui International Service, as the company lacks a securities offering licence.

Without the authorised licence, offering of new securities to investors is unlawful, said the securities watchdog.

“The SEC has received information that Ronghui International Service Co Ltd has encouraged retail investors to invest by informing that their money will go into management of real estate projects or investment projects of other companies, which offer high returns [along with having] minimum investment amounts and an investment period no more than one year,” said the SEC’s statement. “Promotions such as financial rewards or bonuses are also being publicised through telephone, leaflets, brochures, event booths at office buildings and Facebook advertisements.”

The SEC has ordered the company to stop luring investors to the advertised projects.

Ronghui International Service was established in November 2016 with 25 million baht in registered capital. The company is registered with the Commerce Ministry’s Business Development Department.

The firm is a subsidiary of Shanghaibased Rong Group Holding, which operates financial and wealth management services as well as tourism and international trade businesses.

Based on information from the company’s website and Facebook page, there are three investment options, namely Srivara Mansion part 1, Srivara Mansion part 2 and Chubby Crayfish restaurant.

Annual investment returns are guaranteed at 3-6%, with investment periods of 3-12 months. The minimum investment amount is 50,000 baht.

There are around 200 retail investors in the company’s investment projects, said an employee working in the sales department at Ronghui International Service who spoke on condition of anonymity.

The company uses investors’ money to invest in property units in Srivara Mansion through price speculation, where purchases and sales of units are done under the company’s name, the source said.

A former employee of Ronghui International Service said the firm is in the process of seeking an operating licence with the Bank of Thailand since its investment projects are involved with guaranteed interest rates, and it will also apply for a securities licence later.

Investment sums range 1,000-50,000 baht for those working as housekeepers and security guards to 100,000 and 1 million baht for company executives, the source said.

The company has been paying guaranteed investment interests to investors since 2014, the source said.