DAVAO CITY –– The Securities and Exchange Commission (SEC) here warned the public against investing their money in investment vehicles offering huge passive income in so short a time, especially if those behind these vehicles are individuals linked to pyramid schemes.
SEC Davao’s extension office made the statement after the commission issued an advisory against Mer’s Business Center, whose operator had been linked with Kapa (Kabus Padatuon) Community Ministry International Inc.
Kapa/s head Pastor Joel Apolinario had been detained since last year.
SEC identified a certain Roger Abing Camingawan and Reynaldo Abing Cabingawan to be behind Mer’s, a firm with head office in General Santos City, but which operates in different parts of the Davao region.
Of the two, Roger Abing Camingawan has been identified as having links with Kapa.
The SEC advisory said Camingawan had tapped online platforms to lure investors.
The SEC Enforcement and Investor Protection Department found Mer’s Business Center offering an investment scheme through its so-called `contractual joint venture agreement.’
In this scheme, members or business partners were promised a 30- percent monthly interest for one year (or a 360-percent interest in 12 months).
The agreement is renewable for another 12 months.
The SEC advisory said Mer’s instructed those who wanted to invest, to go to its branches and satellite offices in Mindanao. There were reports that some individuals were also offering these investment schemes in the Visayas.
The SEC said the operation was illegal since the firm, though registered with the Department of Trade and Industry, was not registered with SEC, nor had it secured a license to take investments from the public.
Under the Securities Regulation Code, an entity could only solicit investments from the public if it is registered and could secure a license for the purpose.