SEC: 17 firms in Baguio, Benguet with Ponzi scams

Public warned on illegal investment schemes 

BAGUIO CITY -- The Securities and Exchange Commission (SEC) Cordillera has warned the public of Ponzi schemes in the Cordillera saying these are investment scams perpetrated by firms.

SEC regional director Regina Cajucom said even with investor information and dissemination campaigns on investment schemes, there are still a lot of victims of investment scams in Cordillera.

Cajucom said the Ponzi scheme is an investment fraud that involves payment of purported returns to investors from funds contributed by new investors.

Cajucom identified some entities allegedly engaged in illegal investment-taking activities in   in Baguio-Benguet and nearby towns  that include  FJ General Merchandise, FX8M International Club Inc./FX8M International Inc., ADS success/1ADS success, Camcast Corporation, NABA Training, Orro Platta Manna, Tessline, and Golden Bio Marketing.
                Other entities allegedly engaged in illegal investment-taking activities which is subject of advisories in the SEC website and whose registration were already revoked by SEC.

These are Paysbook/PB E-Commerce System LTD., PlanPromatrix Online Co. (PPM), Organico Agri Ventures, Yeheey iTRAFFIC System Inc., Requiza Farms/Requiza Poultry/Requiza Agricultural Products Trading.
 Cajucom also reported that from January to June of this year, the SEC issued advisories to 35 companies, cease and desist order to five   companies, and issued order of revocation to three companies. 

Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities which they claim to generate high returns with little or no risk.

The Ponzi scheme she said, “ordinarily collapses as fast as they are created while leaving its investors behind, unable to recoup their investments.”

She said investment schemes, whether with the use of money or crypto currencies, are considered securities subject to regulatory authority of SEC.

Under Section 8 of the Securities Regulation Code, no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as salesman, or an associated person of any broker or dealer unless registered with the SEC. she said.

She said this is a provision commonly violated by thousands or even millions who join such investment schemes. The misconception, she said, is that only the promoters, meaning those who own the entity or those who organized or run the entity are the only ones liable. The fact is when we apply the said provision, even your relatives or neighbors who enticed you to invest are actually liable under Section 28.

A person who can solicit investment is one who has passed the licensure examination for brokers or dealers in securities being administered by the SEC, she said.   

             She said before considering an investment opportunity, five questions should be asked: Is the seller licensed? Is the investment registered? How do the risks compare with the potential rewards? Do I understand the investment? Where can I turn for help?