THE Securities and Exchange Commission (SEC) warned the public against the investment-taking activities of Trading Cartel and Lele Gold Farm as the entities are not registered with the regulator.
In its verification, the regulator found out that the people affiliated with Trading Cartel had been promising a return of 5%-10% monthly interest.
The SEC said that since Trading Cartel’s scheme involves the sale of securities, the entity is required to register the securities with the regulator and its agents must also have the appropriate license to sell.
Meanwhile, Lele Gold Farm is a mobile application that offers the public “the luxury of earning while playing the games.” It also uses the names Lele Gold Coin and Gold Farm.
In an advisory, the SEC said that investors of Lele Gold Farm are given six types of investment plans worth P3,840, P15,360, P36,480, P52,800, P100,800 and P288,000. Investors are promised weekly earnings ranging from P539 to P11,520 or a monthly income ranging from P2,310 to P345,600.
According to the SEC, the investment scheme propagated by the entity involves the offering and selling of securities in the form of investment contracts to the public with the investors not needing to exert any effort other than to invest money.
In its review, the regulator found out that both entities are not registered as a corporation or a partnership and operate without the necessary license or authority.
Meanwhile, the commission said that FDMS Business, a registered corporation under the SEC, has been soliciting investments without securing a license or authority.
FDMS Business offers investment plans through its “Affiliate Learning Program” wherein investors are given the choice to invest in three packages.
The packages — pre-subscription, basic subscription and pro-subscription — require a minimum investment of P3,000 to P1 million and a promised earning of 30% to 50% per month or 150% to 250% in five months.
The commission emphasized that the selling and offering of securities through the form of investment contracts using the “Ponzi scheme” is fraudulent therefore making it a non-registrable security.
“The commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme,” the SEC said.
The SEC also informed the public that it does not allow the registration of foreign exchange in the nature of financial futures contracts, contracts for difference, and the like. — Justine Irish D. Tabile