The Security and Exchange Commission (SEC) is warning Dabawenyos on Double Your Money schemes which have been proliferating recently.
The Enforcement and Investor Protection Department (EPID) of the SEC has released an advisory to remind the public not to fall for such schemes.
These entities proliferating such Double Your Money activities do not have a real business model to back up the profits that are going to be given to prospective investors.
“The income generated from the foregoing investment-taking scheme depends on the number of referrals, membership fees and/or prior investments received by the entities. The investment-taking schemes proliferated by these individuals has the characteristics of a Ponzi Scheme, where the ‘income’ given to the initial investors are taken from the subsequent investors. This business model is unsustainable and will inevitably result in the demise of the business which directly results in the prejudice of the investors,” the SEC statement read.
These companies or entities must be duly registered with the SEC and that any person or entity intending to offer and sell its investment contracts are required to secure the necessary registration and/or license from the Commission as provided under the Securities Regulation Code.
The SEC is warning all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations enforced by the Commission.
Public are urged to report information on these investment taking activity to the EIPD at epd@sec.gov.ph. (PIA XI/RG Alama)
