SEC identifies more quick-rich schemes

By: Irene R. Sino Cruz - Correspondent/CDN Digital | May 03,2020 - 05:20 PM

CEBU CITY, Philippines —The Securities and Exchange Commission (SEC) has again found several quick-rich schemes that victimize the public.

Lawyer Alma Marie Dalena, SEC Cebu Extension Office officer-in-charge, encouraged investors to think twice before investing their money on fraudulent entities.

“We are reminding the investing public that the certificate of incorporation is not enough for corporations to solicit investments. Before they can do that, they must first secure a secondary license from the Commission. Investors may contact our office by emailing [email protected] to verify if a certain corporation is authorized to engage in investment-taking,” Dalena said.

She also encouraged potential investors to regularly check the Advisories page of the Commission’s official website,

“The Enforcement and Investor Protection Department (EIPD) is proactive in identifying groups or individuals taking advantage of the pandemic to scam investors,” Dalena noted.

“I’m encouraging the investing public to regularly check on the advisories posted on our website for additional guidance and information on the activities of these fraudulent entities. This is also another means to protect themselves against (a) scam,” she added.

Read more: SEC bares 14 groups engage in scams after national emergency declaration

The commission had issued an advisory urging the public to refrain from investing in CROWD1 Asia Pacific, Inc.; Sharebiz Ads/ Sharebiz Advertising/ Sharebiz Online Advertising Services; and Winners Ecommerce International Network Corp. (WINCORP).

CROWD1, Sharebiz and WINCORP neither have registered securities such as investment contracts nor have secured a secondary license to solicit and take investments from the public, as required under Republic Act No. 8799, or The Securities Regulation Code.

The SEC, likewise, found no record of Sharebiz and WINCORP being registered as corporations or partnerships. While incorporated, CROWD1 must have secured a secondary license before it could engage in investment-solicitation activities.

The CROWD1 investor earn mainly from recruitment of members, like a pyramiding scheme. It offers membership packages worth P6,000 to P240,000.

Meanwhile, Sharebiz modus operandi resembles a Ponzi scheme. It offers 42 percent interest every 20 days within a 2-month period for P500 to P50,000 investment by simply logging in his/her account.

On the other hand, WINCORP promises investors that they would earn P1,000 daily, P20,000 weekly or P30,000 monthly by selling products and recruiting members. The investor will also reportedly earn between P1,200 and P9,600 for every match in his/her network.

Read more: Banks warn public vs online scammers

The SEC warned that those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes might 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.

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./dbs

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TAGS: quick-rich schemes, SEC, Securities and Exchange Commission

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