Embattled gold marketing firm, Menzold has contracted the services of an international legal firm Baker and Mckenzie to help it fight its legal battle with the Securities and Exchanges Commission (SEC).
In a release Friday, the company said the UK outfit will join forces with its local lawyers, Kwame Akuffo & Co. Unlimited to contest the shut down of their operations in Ghana.
"The Company will, as a demonstration of good faith and willingness to fully co-operate with the SEC while this matter is resolved, desist in these specific activities outlined in the SEC Communications," the statement said.
In a letter to the Commission Friday, local counsel for Menzgold, Kwame Boafo Akuffo argued that in the letter of Sept 7, in which SEC ordered the company to shut down, the information required leading to the shutdown was “irrelevant.”
The lawyer said the decision by SEC to shut down the company was unfair and premature.
In a letter dated September 7, SEC said it has thoroughly investigated the activities of Menzgold and has found that the Nana Appiah Mensah-owned firm does not have the license to trade in gold collectibles from the public.
The statement explained that interactions with representatives of Menzgold confirmed to SEC the view that the aspect of Menzgold’s business which involves purchase and deposit of gold collectibles and guaranteed returns is a capital market activity under Act 929 without a valid license issued by SEC which contravenes the law.
The statement added that subsequent requests have been made by SEC to Menzgold’s lawyers to furnish SEC with specific detailed information on the operations of the firm.
The supply of those documents, however, does not clear Menzgold to continue the mentioned aspects of Menzgold’s business.
“That aspect poses a threat to unsuspecting and uninformed investors,” SEC noted.
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