SEC flags 11 unauthorized investment schemes

Eleven unauthorized and dubious investment companies resembling a pyramid/ponzi scheme were flagged by the Securities and Exchange Commission (SEC) in a notice issued recently.

SEC has advised the public against dealing with the following entities due to their unauthorized solicitation of investments without the necessary license from the Commission: PPG Investment Group/Conamor Shop; Livewell Multi-Ventures; Blackrock; Perfx Solution Corporation/Trading Basket/Trading Philippines; Flipkart/Flipkart Platform/Flipkart Company; Webmining; Oyala; BKC Trading; Winvest; Mazama; And, Meta Trade.

“These groups have been enticing the public to either register on their website/mobile application or engage in trading with promised lucrative returns on investments,” the SEC notice stated.

SEC explained that these groups have been found to be engaging in unauthorized investment-taking activities by either a) borrowing capital from investors, using said capital to allegedly buy products, then selling said products to consumers, and finally giving back the profits to the investors; b) promising investors fixed earnings or posing as legitimate investment websites and mobile applications; c) sending emails, fax, or letters to the victims and requiring them to pay an “advance fee” before receiving a significant share of a large sum of money; or d) posing as legitimate and reputable financial institutions.

“Such actions resemble a pyramid/Ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products/services, and investors are paid using the contribution of new members,” according to the SEC.

The Commission remains unwavering in its efforts to stamp out illegal investment-taking activities through financial literacy campaigns and advisories to the public.

To verify authorized investment companies, visit the SEC website at www.sec.gov.ph. – JMPS