In the midst of the proliferation of investment scams that have victimized millions, it is important for these people to get empathy instead of being blamed, and to be educated instead of being loathed. Afterall, they are victims not culprits.
So what are the telltale signs that any offerings of fast-bucks business must be scrutinized. Investment offer with extremely attractive returns which are too good to be true are likely to be just that, too good to be true. The Securities and Exchange Commission (SEC) has warned people not to be tricked. While there is a chance it might be true, there’s also a bigger possibility that it might be a scam.
SEC suggested that everyone must go through a process of thinking, examining and studying the investment proposal.
Through its aggressive information campaign against scams, the agency has provided a checklist of how to protect yourself and your money against investment fraud.
First, get the following information: Name of the person and the company making the offer; Address of both person and company; Phone number, particularly the land line. Do not accept cellular phone numbers as the owner cannot be traced; and SEC registration as an investment taker.
A SEC company registration does not grant authority to sell investment instruments, such as securities, bonds, commercial papers, or similar financial instruments. Only investment houses and financing companies with quasi-banking (QB) license and with SEC-registered securities may offer to sell the same to more than 19 investors. Among others, only SEC-registered persons (brokers/dealers/salespersons) may offer or sell SEC-registered securities to the public.
One can also spot a fraudster by the following characteristics: unwilling or hesitant to give information; has no SEC registration; claims to have QB license or SEC-registered securities; and fails to give information or is not listed in the SEC website.
Once these telltale signs are apparent, the next steps should be to report to Enforcement and Investor Protection Department of SEC (5846337); and to seek assistance from the National Bureau of Investigation (NBI) or police in case of emergency.
It is important to have the following information such as the number of investors, minimum placement, rate of return, etc. and verify the name of the company from a list of those qualified to offer investments at the SEC website. Finally, SEC said persons who wish to report may call the SEC Corporate Governance and Finance Department at 584-6103 or the Markets and Securities Regulation Department at 584-5703.
For those who have ‘invested’ in the entities already closed, it is best to file an action rather than cling on to the hope that the operations can resume which, given its unlawful nature, is unlikely.
