Mindanaotoday.com | SEC-CDOEO flags 10 investment scams
THE Securities and Exchange Commission has flagged 10 investment scams as the year 2023 starts in the pursuit of its intensive enforcement efforts. In separate advisories for the month of January, the Commission warned the public against dealing with: Bit-Cryptorising Consultancy and BCR Rising Trade Inc.; FDMS Business and Marketing Solutions Inc.; Trading Cartel; Lele Gold Farm/Lele Gold Coin/Gold Farm; Oriental Peak Mining; PPG Investment Group/Conamor Shop; Livewell Multi-Ventures; BlackRock; Perfx Solution Corporation/Trading Basket/Trading Philippines; and FlipKart/FlipKart Platform/FlipKart Company.
Investment schemes
Bit-Cryptorising Consultancy and BCR Rising Trade Inc. is apparently soliciting investments from the public without the necessary licenses to do so. The said entity recruits its investors by offering investments ranging from P1,000 up to P3,000.
Investors can also earn 15% per week accumulating up to 60% in 30 or 120% for 60 days with additional benefits of 20% as partner rewards.
On the other hand, FDMS Business and Marketing Solutions Inc. has been found to be offering investment plans with promised earnings ranging from 30% up to 50% per month.
uch actions resemble a pyramid/ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products/services/investors are paid using the contribution of new members, according to the SEC.
Trading Cartel is also found to be promising a return of as much as 5% – 10% monthly interest and is not registered with the Commission as a corporation or partnership nor is it authorized to solicit investments from the public.
In utilizing the advancement of technology, another scheme through a mobile application was used as a platform by Lele Gold Farm/Lele Gold Coin/Gold Farm which is said can be downloaded in Google Playstore.
The group of persons claiming to represent it has been found to be promising investors luxury earnings of as much as P2,310 up to P345,600 monthly income while playing the said game.
Such actions resemble a pyramid/ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products/services/investors are paid using the contribution of new members.
Fifth on the list is the Oriental Peak Mining which has been found to be promising investors a 15-day payout where monies invested, ranging from P500.00 up to P1,000,000 and is said to double in just 15 days.
Such offer was subsequently modified to a daily profit of 5% for 45 days or for a total of 225% in just 45 days and is a qualifier of a ponzi scheme which promises a percentage which is too good to be true.
The PPG Investment Group/Conamor Shop also is flagged for engaging in investment taking activities through borrowing capital from investors and then using said capital allegedly to buy beauty products. Such beauty products are then sold to consumers and in turn some of the profits from the sale is given back to the investors. The placement of money in a common enterprise is considered as an “investment contract” which is a security – such must be duly registered with the Commission.
Based on the SEC records, PPG Investment Group/Conamor Shop is not registered with the Commission and has no authority or license to solicit, accept or take investments from the public.
Livewell Multi-Ventures has been found to be enticing the public to invest online or through the internet by availing the various plans and invest from Php 500.00 up to Php 50,000.00 which promises a fixed daily income of 3% for 60 days or for a total of 180% in just two months. Similarly, the said entity is not registered with the Commission hence, is not allowed to solicit or offer securities from the public.
The eighth entity is the BlackRock which poses as a legitimate investment website and mobile application.
Based on the information gathered, the said entity is engaged in investment taking activities by introducing a platform that makes it appear that the investor will apparently earn through “crude oil energy.”
While Trading Cartel has been flagged by the Commission already, it is allegedly known to be operating under Perfx Solution Corporation/Trading Basket/Trading Philippines.
The Commission hereby directs the public to not invest or stop investing to any invitations or offerings made by the names Trading Cartel/Perfx Solution Corporation/Trading Basket/Trading Philippines.
Lastly, FlipKart/FlipKart Platform/FlipKart Company entices the public through an “Advance Fee-Fraud” scheme which is a form of fraud and one of the most common types of confidence trick.
The said entity directly communicates with their victims through email, call, SMS, Whatsapp or other communication platform offering unbelievable discounts, monetary efforts, investment contracts, or promising their intended victims a significant share of a large sum of money in return for a small up-front payment.
“As we are still starting the year, this is already a huge number of identified investment scams aside from those which are still being investigated. I encourage the public to be cautious with their investments and place it in safe and legit investment platforms, or better keep it into your savings account instead of taking risks. May we all consider the experiences we dealt before as a lesson to all of us to not be easily enticed with random offerings which are too good to be true in their nature. It has always been an advice from us in the Commission to always investigate before you invest,” said lawyer Frederick Enopia, director of SEC Cagayan de Oro Extension Office.
The SEC has warned the public that those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes may be held criminally liable and penalized with a maximum fine of P5 million or an imprisonment of 21 years both under the Securities Regulation Code.
Also, those who invite or recruit others to join or invest in such ventures may likewise incur criminal liability, or otherwise be sanctioned or penalized accordingly.
Furthermore, the names of all those involved are reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.
The SEC also encourages the public to report any fraudulent or unauthorized solicitation activities to its Enforcement and Investor Protection Department through email at epd@sec.gov.ph. The SEC Cagayan de Oro Extension Office also assists walk-in complaints or reports and accepts correspondence via email at sec-cdoeo@sec.gov.ph. (SEC CDOEO)
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