SEC warns anew of unauthorized investment schemes

DAVAO CITY –– The Securities and Exchange Commission (SEC) here has raised concern over the continued prevalence of unauthorized investment schemes that offer juicy financial returns.

In a statement, the SEC office said “the situation has been doubly challenging” as the entities have turned to online platforms, reaching more unsuspecting individuals.

The agency has reminded the people to be discerning in doing investments to avoid the similar experiences of those who invested in schemes that later turned out to be scams.

The country observes the Investor Protection Week, based on Proclamation No. 846 signed by President Duterte on Nov. 15, 2019.

“(T)hose who have money to invest should ensure that the platforms that they are investing in must have a good track record and not just an overnight presence in cyberspace,” the SEC said.

The agency urged the public to “always be prudent in dealing with recruiters because, most often, when offers are too good to be true, they really are.”

It added that would-be investors could visit the SEC website to confirm if the entities they are dealing with are legitimate.

The SEC said that aside from the traditional Ponzi and pyramiding schemes, some entities and individuals have also propagated new illegal investment schemes such as cryptocurrencies and foreign exchange trading.

The agency reminded the public that only companies with appropriate licenses from the Bangko Sentral ng Pilipinas could engage in currency trading.

Further, companies soliciting securities from would-be investors must have secondary licenses from the SEC, aside from their business registrations.

The SEC said that several individuals have been inquiring whether certain entities were allowed to do business in the country, particularly in cryptocurrency trading, a complicated scheme where digital currencies are being traded online.

Late last month, the operator of Rigen Marketing, Rico John C. Garcia, was brought to Tagum City after his arrest in Manila, to face charges of syndicated estafa.

In July, law enforcers arrested Joel Apolinario of Kapa Community Ministry International in a raid in a secluded private resort in Surigao del Sur.

Both Kapa and Rigen ran Ponzi schemes that lured thousands of investors in Mindanao. Kapa promised a 30-percent return every month, while Rigen promised 400 percent.

Edited by LZB

SOURCE: https://newsinfo.inquirer.net/...