NBI to public: Verify if firms are legit before investing in them
NBI-CEBDO agents raid and confiscate the equipment of a networking company located at the MTC Shang Bldg. at ML Quezon Highway in Brgy. Pajo, Lapu-Lapu City on Wednesday afternoon, May 25, 2022, for alleged pyramiding. | Contributed Photo via Paul Lauro
MANDAUE CITY, Philippines — The National Bureau of Investigation Cebu District Office (NBI Cebdo) is reminding people who would want to invest in companies especially corporations to verify their activities to the Securities and Exchange Commission (SEC).
The reminder came after they raided a company located at the MTC Shang Bldg. at ML Quezon Highway in Barangay Pajo, Lapu-Lapu City on Wednesday afternoon, May 25, for allegedly conducting a pyramiding scheme.
Special Investigator 3 Agapito Gierran, said that the company identified as JStore Innovation Worldwide Corp. was registered but only for trading and that they did not have authority to solicit investment from the public.
Moreover, Joil Dela Cerna Ocay, the company’s president has no license or registration to act as a capital market professional such as broker, dealer, and investment solicitor.
Gierran said if companies want to offer securities to the public they should obtain a secondary permit from SEC.
He said the company had been using its products to hide solicitation activities.
He said the company defrauded investors of their investments under the pretext of a typical multilevel marketing scheme where goods such as coffee, liniments, juice mix drinks, and cosmetics, among others were sold or exchanged in return for their investment amounting to P10,000 as the minimum.
He said people were promised 50 percent to 100 percent interest in their investment.
Gierran estimated that the company had been earning billions of pesos considering that the company was established since 2016.
He said that the target of the company were Overseas Filipino Workers as it also allegedly provided an app that investors could monitor their investments.
Moreover, the Lapu-Lapu based company has also 114 stores nationwide.
Gierran said there were investors who had visited their office telling them that they had allegedly invested P1 million, P2 million, and thousands of pesos.
One of the investors from Cebu City, who refused to be named, said she had invested P150,000.
She said at first, she was paid out and was inclined to invest more, but later on, the company was not giving the interest or the investment anymore and they were even forced to upgrade their investment.
She said the incident had affected her and not only did she lose money but she had also invited her family members to invest because of the company’s promised “double your money”.
Agent-in-Charge Arnel Pura is warning people to always be cautious and verify the reliability of the company.
He is encouraging other victims to report to the NBI offices nationwide.
Gierran said they would likely recommend to SEC to issue a cease-and-desist order to stop the company’s operation.
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