It’s getting pretty hard to tell people that the investments craze sweeping across the region is too good to be true. Indeed, Ponzi is poison.
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for early investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers.
The Securities and Exchange Commission (SEC) had issued a scam alert on these investment schemes and had issued advisories against Kapa and Rigen–two of the more popular investment schemes in the region. Earlier, Kapa was issued an advisory and a Cease and Desist Order while its certificate of registration was revoked. As to Rigen, which is a fairly recent scheme, the SEC issued an Advisory on May 24 as an immediate warning to the public while further processes are said to be ongoing.
Despite the warnings and advisories, those who are into the Ponzi-style investment scheme are simply too stubborn and blinded by the promise of instant money and great wealth. These ‘investors’ have ignored the warnings of the SEC and not even some explanations to great lengths by even the most brilliant legal minds in Davao can convince them that the promise is just too good to be true.
SEC Commissioner Javey Paul Francisco explained in an interview with Edge Davao that the scheme propositioned by such investments as Rigen Marketing, which the SEC has made its recent advisory, is not unsustainable and illegal. Aside from the advisory, the Commission is taking further steps to prevent the situation to escalate to massive proportions where many will lose their hard-earned money on these investment schemes. The reason why SEC is doing the advisories is to protect the public nothing less. Those who have invested on Rigen and other schemes should not take this against them as it is the inherent duty of the agency to apply the law where it finds something illegal and if the welfare of the public is jeopardized.
It is best to listen to the authorities before this too good to be true investments explode before our very eyes.
