THE Securities and Exchange Commission (SEC) has barred the Chiyuto Creative Wealth Documentation Facilitation Services from soliciting investments from the public through a double-your-money roulette game.
In an order issued on Feb.1, 2021, SEC directed Chiyuto, which registered as a sole proprietorship and later on as a one-person corporation, to cease and desist, under pain of contempt, from selling and/or offering securities in the form of investment contracts until it has filed and secured the necessary license.
The SEC issued the order after finding that Chiyuto has offered investments to the public with promised returns of 100 percent in one day, 30 days or 45 days, depending on the outcome of the roulette, without securing a secondary license.
Under the scheme, an investor places as low as P1 to as much as P1 million. Chiyuto will then spin the roulette to select the payout schedule and issue a promissory note to the investor with the corresponding return and day when the guaranteed earnings could be claimed.
In addition, Chiyuto has offered a five percent referral commission and held raffles with brand-new cars and motorcycles as prizes to attract more investors.
The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC. / JOB WITH PR