SEC warns public against fraudulent investment schemes online

The Securities and Exchange Commission warns public against online scammers who offer fake investments. FILE PHOTO / REUTERS

MANILA, Philippines — The Securities and Exchange Commission (SEC) warned the public on Wednesday against several fraudulent online investment schemes and urged people to verify the necessary licenses of dealers before doing business with them.

According to SEC Enforcement and Investor Protection Director Oliver Leonardo, potential investors should make sure that sellers have permits to offer and sell securities.

“Maging mapanuri po tayo sa lahat ng ating nae-encounter na mga offers of investment, napakalaking kita, at pakatandaan lang po natin kailangan may license ‘yung company, including yung mga taong nagaalok nito,” Leonardo told reporters.

(Let’s be critical in all the offers of investment we encounter, promising huge profits. Let’s just remember that the company must have a license, including the people who offer it.)

“‘Pag wala silang mapakitang lisensya mula sa SEC kahit na meron silang registered corporation hindi po sapat ‘yon paglabag po sa batas iyon,” he added.

(If they don’t have a license to show from the SEC, even if they have a registered corporation, that’s not enough, that’s a violation of the law.)

Leonardo issued the warning after filing criminal complaints against a gas corporation for its engagement in investment fraud and the sale of securities without proper permit.

The said corporation lured victims to a “too good to be true” co-ownership program scheme, promising them a 40 percent return of investment and an additional 60 percent share in net profits from its 17 total gas stations… despite only having 3 to 5 actual gas stations.

Leonardo said that victims could be anyone, from professionals to students, as long as they have access to the internet.

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