SEC steps up campaign against scrupulous online investment schemes
26 January 2023 – The Securities and Exchange Commission (SEC) has intensified its campaign against unauthorized online investment schemes by engaging the local government units in their information, education and communication (IEC) initiatives.
The SEC through its extension offices in cities and provinces partnered with LGU information officers through social media in the campaign against fraudulent investment methods mostly done online without SEC license collectively called “ponzi.”
On January 25, the SEC has revoked the Certificate of Authority of Fast Coin Lending Corp. to operate as a lending company for its continuous non-compliance with SEC Memorandum Circular No. 19, Series of 2019 (SEC MC 19) and its non-operation within 120 days from the grant of its CA.
In an order dated January 10, the SEC Corporate Governance and Finance Department (CGFD) found that Fast Coin Lending Corp. failed to comply with the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms. The company was also found to have violated the Implementing Rules and Regulations (IRR) of Republic Act No. 9474, otherwise known as the Lending Company Regulation Act of 2007 (LCRA).
Fast Coin Lending had been operating Cashcow Mobile Application despite failing to submit the required disclosures to the SEC, while also operating two more OLPs, namely Cashguard and Coco Peso, without registering the entities with the Commission, according to the CGFD.
Earlier on January 12, the SEC canceled the corporate registration of Silverlion Livestock Trading Corp. for soliciting investments from the public without the requisite secondary license from the Commission to offer or sell securities to the public. According to the SEC, Silverlion’s activities constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public.
Moreover, SEC advised the public against dealing with the following online investment companies for lack of license: Oriental Peak Mining promising investors a 15-day payout where monies invested, ranging from Php500.00 up to Php1,000,000.00, will double in just 15 days; Lele Gold Farm/Lele Gold Coin/Gold Farm which is a mobile application that can be downloaded in Google Playstore, promising investors luxury earnings of as much as Php2,310.00 up to Php345,600.00 monthly income while playing the said game; Trading Cartel offering investment schemes with promised returns of as much as 5%-10% monthly interest; FDMS Business And Marketing Solutions Inc. through its so-called Affiliate Learning Program, has been found to be offering investment plans with promised earnings ranging from 30% up to 50% per month.
The SEC in its advisories warned that these four investment companies “resemble a pyramid/ponzi scheme.”
In Baguio City, the public is advised to verify the legitimacy of an investment company by contacting the SEC Baguio Extension Office at Telephone: (074) 309-5804 and Mobile: 0939-325-3657 / 0997-235-5975. – JMPS
