SEC files criminal cases vs. gas firm over alleged investment scam
Securities and Exchange Commission (RADYO INQUIRER file photo)
MANILA, Philippines — The Securities and Exchange Commission (SEC) on Wednesday lodged criminal complaints against a gas and oil corporation along with 11 of its employees.
This was for alleged violation of the Securities Regulation Code (SRC).
SEC formally accused the company of engaging in an investment fraud that involved the sale of securities without proper permit.
INQUIRER.net is withholding the name of the firm until it issues a statement.
SEC Enforcement and Investor Protection Director Oliver Leonardo led the filing of cases at the Supreme Court.
Leonardo said the corporation had lured victims to a co-ownership program that was “too good to be true.”
It had reportedly promised them a 40 percent return of investment.
It had also made the victims believe they would receive a 60 percent share in net profits from its alleged 17 total gas stations.
SEC launched an investigation.
It found out the company only had three to five gas stations in Calabarzon, instead of 17.
“Sa kanilang scheme, iyong co-ownership program, P400,000 investment in three months, meron ka nang P100,000 na kita at maibabalik din ‘yung pera mo,” Leonardo explained the alleged illegal operation.
(In their scheme, a co-ownership program, a P400,000 investment in three months, you already gain you P100,000 in income and your money will also be returned.)
“Napakalaki noon. Iyon ang tinatawag na too good to be true. Saan naman nila kikitain ‘yon samantalang iyong natayo nilang gasolinahan, tatlo? Wala pang lima,” he said.
(That’s huge. That’s what we call too good to be true. Where are they going to earn that from when they had only built three gas stations? Less than five.)
Leonardo likened the activity to a ‘Ponzi scheme.’
This is a system where all the funds given by the investors are circulated and paid to whoever invested first.
The business eventually collapses.
Leonardo said the victims had invested a total of P118 billion to the corporation.
“Itong mga biktima, kahit sino pwede – professional, estudyante,” he said.
(These victims can be anyone – professional, student.)
“Mga nakapag-aral ang tinatarget nila and anybody who can access the internet, pwedeng pwede,” he added.
(Educated people are the ones they target and anybody who can access the internet, they are easy targets as well.)
“Kaya mag-ingat po tayo sa mga scam na laganap sa internet,” warned Leonardo.
(That is why please be careful against scams that are widespread on the internet.)
Leonardo further said prior to filing the case, SEC had issued an advisory against the company.
The commission had also revoked the firm’s certificate of incorporation.
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