SEC warns against placing money in Pluggle Inc.

The Securities and Exchange Commission (SEC) on Thursday warned potential investors against placing their money in Pluggle Inc., saying the company has no authority to solicit investments.

"The public is hereby informed hat Pluggle Inc., despite having been registered with the commission as a corporation, is not authorized to solicit investments from the public," SEC said in an advisory.

This commission has received information that Pluggle's advertising website claims members can make "significant gains" from a P1,000 initial investment by simply logging on every day or by getting referrals.

"On its Facebook account, Pluggle promises a return of 30 percent to 100 percent in 12 days," the SEC said.

Pluggle members supposedly get P100 upon registration and P100 for each log on to the website, and for enticing other other people to join the investment scheme.

In an separate announcement, Pluggle cited the SEC advisory and emphasized that it "will never be" an investment company.

"The concept of Pluggle is clear and known to all. But, unfortunately, some people and sectors have misunderstood the way we do business, and maybe some members misrepresented Pluggle when talking to people," the company said.

Pluggle said its management and lawyers are looking into the matter and will take the necessary response and address the SEC advisory.

The SEC clarified that the company "has not secured the necessary license or permit from the commission as required under Sections 8 and 12 of the Securities Regulation Code (SRC)."

"Consequently, those who act as salesman, brokers, dealers or agents of Pluggle Inc. ... may likewise be prosecuted and held criminally liable," it added.

Those found guilty may face fines of up to P5 million, or a penalty of 21 years imprisonment, or both.

"Accordingly, those who invite or recruit other people to join or invest in this venture or offer contracts or securities to the public may be held liable or accordingly sanctioned or penalized," the SEC said.

"In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Pluggle Inc. or its representatives," it added. — Ted Cordero and Jon Viktor Cabuenas/VDS, GMA News