SEC warns public vs 4 firms soliciting online investments

By: Doris C. Bongcac - Editor/CDN Digital | April 21,2021 - 08:00 AM

MANDAUE CITY, Cebu — The Securities and Exchange Commission (SEC) is asking the public not to invest their hard-earned cash on at least four firms that are soliciting online investments.

In a statement released on Monday, April 19, Lawyer Alma Marie Delana, officer-in-charge of the SEC-Cebu Extension Office, said that Wonkacash Or Wonka Cash App Financial Consultancy Services, IX Trade /IXTRADE, Learn and Earn Online (with trading partners 247 Cryptotrading  Fx, 247  Cryptotrade  Online, Exchangestock, Binary Options Trading and Wolves Options), and Investrade Marketing / Investrade Digital Marketing Services lack the necessary certificates and registration to engage in online investment trading.

“We urge the public to not easily be swayed with sweet promises of easy money. Learn to spot the scammers especially in your social media accounts and always fact-check,” she said. “Before investing your hard earned money, CHECK with SEC,” Delana said.

Delana advised the four companies to cease from engaging in investment solicitations “as part of its (their agency’s) relentless drive against illegal easy-money scheme out to con the public especially during this health crisis.”

Those, who recruit people to join in these investment ventures, will be held criminally liable and could face fine and imprisonment, she said.

She is asking Cebuanos to always be cautious when dealing with entities and individuals who offer “promising investments which offer ridiculous return of your money but with little or no risk at all.”

Quoting the outcome of the investigation made by the SEC Enforcement and Investor Protection Department (EIPD), “Learn and Earn Online, appears to be the broker for 247 Cryptotrading Fx, 247 Cryptotrade Online, Exchangestock, Binary Options Trading and Wolves Options, which are said to be based in the United Kingdom.”

Learn and Earn Online is based in Kenya.

The company offers free seminars and tutorials on how to invest in cryptocurrencies and how to invest online and lures the public to invest in these online companies with the promise of lucrative returns with little or no risk.

SEC said that the EIPD investigation showed that the entities offer too good to be true investment opportunities ranging from 18 percent to 1,000 percent income per week which is indicative of a Ponzi scheme, where returns to early investors are likely to be paid out from the investments of new investors and not out of the companies’ profits.

EIPD investigators also found out that Learn and Earn Online “use synthetic or fraudulent identities” in their operation.

SEC said that Investrade Marketing/Investrade Digital Marketing Service offers a 100 percent double-your-money scheme in 30 days or a return of 300 percent net income with capital within 40 days of investment.

Investors are told to deposit their cash to certain bank accounts or through online remittance centers and send the proof of payment to https://www.facebook.com/graciana.ganzo for verification.

As posted on its official Facebook page WonkasCash Official Group, promises a 100 percent double-your-money scheme in just 12 days for investments ranging from P500 to P200,000. An investor can also earn from direct referrals.

IX Trade or IXTrade engages its victims through its website http://www.ixtrade.net or through its Facebook pages, “IXTRADE Legitimate”, “Ixtrade.net”, “IXTRADE -TEAM PANALO” and “INGRID ARCHE” and convinces them to invest P500 to P20,000 and earn 150 percent after 12 days.  Investors are also promised an additional 20 percent as referral bonus.

Dalena warned that the offering and sale of securities in the form of investment contracts using the Ponzi scheme is fraudulent and unsustainable and is not a registrable security.

“The Commission will NOT ISSUE a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme,” she said. / dbs

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TAGS: 4 firms, Atty. Alma Marie Delana, SEC. online investment. Ponzi scheme, warning

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