Last May 31, 2019, the Securities and Exchange Commission (SEC) has issued an advisory regarding numerous unregistered investment companies that draws the public to put their money into financial schemes that give high profit.
According to the SEC, people nowadays utilize social media like Facebook, YouTube, Twitter, LinkedIn, and other web sites to look for investment opportunities to diversify their funds. Consequently, they fall prey to online investment schemes that promise higher earnings.
Companies Not To Deal With
Aside from KAPA-Community Ministry International, Inc. (a company promising 30% monthly interest for an investment evidenced by a Deed of Donation or Certificate of Membership), the SEC identified 22 new investment companies to be wary of. The list includes:
- MGA Business Enterprises
- Coophub Multimedia Services
- Jogle Innovative Marketing
- Global Dream Zion
- BCT Marketing/BCT Motorcycle and Car Trading
- RTM/RTM Pharmacy and General Merchandise
- Diamond Marketing
- Fusion Marketing
- BCC/BCC Cosmetics Trading
- Unlishop Compensation Plan Marketing
- Crowd Royals
- ADA Farm Agri Venture
- Nermie Marketing/Nermie Health and Beauty Products Trading
These entities listed started to get money from investors by offering investment contracts via Facebook pages or secret Facebook groups and chatrooms. They make people believe that the funds were invested in forex, bitcoin and other cryptocurrencies to prove its capacity to earn higher returns.
Based on the reports, these companies require the investors to pay their initial investments thru bank deposit, Coins.ph, GCash, remittance centers, or thru its authorized agents. Afterwards, copies of the proof of payment should be sent via private messages. Mode of payout is thru the same channels where you pay in.
The SEC reminds the public that it is a violation of the Securities Regulation Code if such investment schemes involve the sale of securities (e.g. money, cryptocurrency, and the likes) without a license from them. They also warned the people about the three common red flags to watch out for.
One should be cautioned if investment entities promise to pay “unrealistic gains” usually ranging from 10 to more than 100 percent returns. It probably is a scam if it is too good to be true. Another red flag is a commitment of “guaranteed returns”. According to SEC, every investment involves risk. Lastly, when companies wanted you to invest right away without giving you time to think about their proposal.
The Enforcement and Investor Protection Department of the SEC is always open if the public wants to report occurrences of investment scams.