Amid coronavirus 2019 crisis, unauthorized investment schemes persist

By: Irene R. Sino Cruz - CDN Digital | April 23,2020 - 01:50 PM

 

CEBU CITY, Philippines—Unauthorized investment schemes continue to occur even during the coronavirus disease 2019 outbreak to prey on the public, the Securities and Exchange Commission (SEC) said in an emailed press release.

The commission has been strictly monitoring individuals and groups that may take advantage of the pandemic to try to dupe the public through scams, phishing, fraudulent emails, or other similar acts.

Republic Act No. 8799, or The Securities Regulation Code, requires those involved in soliciting, accepting or taking investment from the public to get the necessary licenses from SEC.

It has identified four more unauthorized investment schemes, including rackets possibly operated by previously flagged groups under new names.

Read: SEC warns about unauthorized investment schemes

Last April 21, the commission issued separate advisories warning the public against dealing with Viceem Help Worldwide/ Viceem Help by Millionaire Maker Team, Nexus P Capital by GK Marketing Limited, and My Profit Robot (MPR).

In an earlier advisory dated April 15, SEC also flagged the unauthorized investment-taking activities of Norway International OPC.

Based on reports from the public and as posted on its Facebook Messenger group, Viceem Help Worldwide/ Viceem Help is simply the new name of Azenzo-Online, whose unauthorized investment-taking activities have been flagged earlier.

The investment scheme of Viceem Help Worldwide/ Viceem Help resembles that of Azenso-Online, which promises a 30 percent to 100 percent return on investment within five to 20 days under a scheme similar to that of Kapa-Community Ministry International.

Nexus P Capital, a company purportedly incorporated in the United States, offers cryptocurrency and foreign exchange trading accounts promising lucrative returns. Under its scheme, investors cover only a fraction of the value necessary for the trade or transaction, with the balance to be provided or lent by their brokers or agents subject to certain fees and/or commissions. 

It offers a trading bonus system through credit tokens granted to investors who are then required to comply with the minimum trade volume requirement. If the investor fails to comply, the credit tokens are forfeited and the losses incurred will be deducted from the investors’ deposits, which subsequently, will be subject to a 20 percent withdrawal fee.

Meanwhile, MPR claims to be a unique trading robot that trades cryptocurrencies around the clock using BXTCoins and Property Arbitrage. It further claims that it buys and sells cryptocurrencies over several markets in order to make a profit from small to massive price differences across different markets.

As posted online, MPR touts an average daily profit of one percent per day or 365 percent per annum. To earn, one will need to purchase a six-month license for $200 and deposit bitcoins in his or her BXT wallet. 

An initial investment of P5,000 will supposedly yield a profit of P1,739 in 30 days, or a one percent daily profit, to as much as P20,022 in six months. In addition, an investor may earn from referral fees and receive up to 35 percent commission on sales.

Criminally liable

On the other hand, the investment scheme of Norway International involves beauty products and food supplements. One may purchase starter packages worth P1,500 to P4,500 to earn retail profits, cash rewards, direct referral bonuses, pairing bonuses, direct match bonuses and car and travel incentives, among others.

The investor may earn even without selling any of the products under the so-called Norway International Binary System. A member or future investor availing of the P1,500 starter package is promised P90,000 to P270,000, an equivalent to a 6,000 percent to 18,000 percent return on investment, within a month.

The commission then warned that those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes could be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years or both under the Securities Regulation Code.

The SEC urges the public to report unauthorized investment solicitation activities to its Enforcement and Investor Protection Department at [email protected] /bmjo

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TAGS: Azenzo-Online, illegal investment schemes, Kapa-Community Ministry International, My Profit Robot, Nexus P Capital by GK Marketing Limited, Norway International OPC, Republic Act No. 8799, SEC, The Securities Regulation Code, unauthorized investment sch, Viceem Help Worldwide/ Viceem Help by Millionaire Maker Team

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