SEC warns public against dealing with 5 online investment firms

The Securities and Exchange Commission (SEC) warned the public not to deal with at least five online investment firms because the companies have no necessary permits to operate in the Philippines.

In separate advisories, the SEC warned that the companies are “not registered as a corporation or partnership” and are “not authorized to solicit investments from the public.”

The commission identified the companies as follows:

• Crypto Expert Inc. (CyptoExpert Trading or CryptoExpert: Mutual Funds and Trading Expert)

• Paysbook E-Commerce System Co. Ltd (Indigen Coins)

• Freedom Traders Club (Ploutus Coin)

• Purewealth EBC Corp. (Purepound)

• Yeheey Itraffic System Inc.

The SEC said these unauthorized companies did not register as a corporation or partnership, and are not authorized to solicit investments from the public.

These unauthorized corporations entice the public to invest by promising unreasonably high returns on investment of 25-percent a week, the commission noted.

“They claim that the money solicited from investors is used to fund the trading activities of the corporation. After profits are earned, payouts are then distributed to all the investors on a weekly basis,” it said.

“Since this scheme involves the sale of securities to the public, the [Securities Regulation Code] requires that the securities offered are duly registered and that the appropriate license and/or permit to sell securities to the public are issued to the corporation and/or its agents.”

Under the Securities Regulation Code, those who act as salesmen, brokers, dealers, or agents of such companies may be penalized with up to P5 million in fines or 21 years imprisonment.

“Information as to whether securities are registered or not may be sought from the SEC’s Corporate Governance and Finance Department or Market and Securities Regulation Department,” the corporate regulator said.

The SEC is urging the public to report any information regarding the identities of the officers, members, brokers, and representatives of the companies to the commission.

They may call the Enforcement and Investor Protection Department at (02)818-6637 or at (02)818-6047, or via email at epd@sec.gov.ph. —VDS, GMA News