SEC-Cebu warns public anew: Don’t go for online ‘get-rich-quick’ schemes

·2 min read

AS THE world honors women of all races, the Securities and Exchange Commission-Cebu Extension Office (SEC-CEO) warns the public on the presence of “get-rich-quick” online investment schemes and franchising.

In a statement, SEC-CEO officer-in-charge lawyer Alma Marie Dalena said, “It is timely that we are issuing this call to the public when we’re celebrating International Women’s Day as these scammers are likely to entice mostly women who are left at home or are busy at work and juggling finances while facing this global health crisis.”

Financially, the effects of the Covid-19 pandemic have brought such economic upheaval in the purses of the people, and the presence of these get-rich-quick schemes are enticing to the public who are in need of money.

The women sector is particularly vulnerable as they principally hold the power of the purse.

Thus, Dalena urged the public, especially women, to be vigilant in dealing with these companies or their representatives.

“Bear in mind that the SEC company registration or the articles of incorporation is not proof that a corporation can solicit investments. Before they can do that, they must first secure a secondary license from the commission for them to engage in the sale of securities,” Dalena said.

Under the SEC rules, the corporate registration does not grant authority to sell investment instruments such as securities, bonds, commercial papers, or similar financial instruments.

Only investment houses and financing companies with quasi-banking licenses and with SEC registered securities may offer to sell to more than 19 investors, the SEC-CEO official added.

Also, those who are authorized to sell or offer SEC registered securities to the public are only SEC registered persons like brokers, dealers or sales persons.

Dalena encouraged the public to regularly check the Commission’s official website www.sec.gov.ph and read the advisories section before investing. She also asked would-be investors to email the commission through seccebu@sec.gov.ph to verify if a certain corporation is authorized to engage in investment-taking.

Since January this year, the SEC has already issued at least eight advisories warning the public of several Ponzi-scheme investments scams that included Masa Mart Business Center OPC and Masa Mart Enterprise OPC, Royal O’ Financial Consultancy Services, Solmax Global Ltd. and Igniter 100, Jamsmart, Bitaccelelerate/BitaccelateProject.com/BA/Bitaccelerator, R.L. Aggregates and Diversified Lending Group, Inc., and RGS World Marketing Corp./RGS Online Shop/ RGS Online Marketing and RGS Foundation. (PR)