BAGUIO CITY — Be wary of the Ponzi scheme as an investment scam, the Securities and Exchange Commission (SEC) Cordillera warns the public.
SEC OIC Regional Director Regina Cajucom during the 2nd Quarter meeting of CONSUMERNET-CAR said even with continuous investor information and dissemination campaigns on investment schemes, it is surprising that there are still a lot of victims of investment scams.
Cajucom explained that a Ponzi scheme is an investment fraud that involves the payment of purported returns to new investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk.
The Ponzi scheme she said “ordinarily collapses as fast as they are created while leaving its investors behind, unable to recoup their investments.” She reminded that investment schemes, whether with the use of money or crypto currencies, are considered as securities subject to the regulatory authority of SEC.
“Under Section 8 of the Securities Regulation Code, no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as salesman, or an associated person of any broker or dealer unless registered with the SEC.” she said.
“This is a provision commonly violated by thousands or even millions who join investment schemes. The misconception is that only the promoters, meaning those who own the entity or those who organized or run the entity are the only ones liable. The fact is when we apply the said provision, even your relatives or neighbors who enticed you to invest are actually liable under Section 28,” she explained.
A person who should be soliciting investment is one who has passed the licensure examination for brokers or dealers in securities being administered by the SEC, she stressed.
Cajucom identified some entities allegedly engaged in illegal investment-taking activities in Baguio-Benguet and nearby towns that include FJ General Merchandise, FX8M International Club Inc./FX8M International Inc., ADS success/1ADS success, Camcast Corporation, NABA Training, Orro Platta Manna, Tessline, and Golden Bio Marketing.
She also presented other entities allegedly engaged in illegal investment-taking activities which were the subject of advisories in the SEC website and whose registration were already revoked. These are Paysbook/PB E-Commerce System LTD., PlanPromatrix Online Co. (PPM), Organico Agri Ventures, Yeheey iTRAFFIC System Inc., Requiza Farms/Requiza Poultry/Requiza Agricultural Products Trading.
Cajucom also reported that from January to June of this year, the SEC issued advisories to 35 companies, cease and desist order to five companies, and issued order of revocation to three companies.
She advised that before considering your next investment opportunity, start with these five questions: Is the seller licensed?, Is the investment registered?, How do the risks compare with the potential rewards?, Do I understand the investment?, and Where can I turn to for help? **JDP/MAWC – PIA CAR)
