SEC warns public vs online investment scams as Isabela firm faces CDO

CITY OF ILAGAN, Isabela — The Securities and Exchange Commission (SEC) has warned the public about online investment scams following its issuance of a cease-and-desist order (CDO) against Fidelity Capital Investment Group-Yepbit Exchange PT Limited (FCIG-YEPBIT) in Upi, Gamu, Isabela, recently.

The company allegedly solicited investments without SEC approval.

READ: SEC taps TikTok to boost fight vs investment scams

A former Ilagan City school head, who recently resigned from DepEd-Ilagan, has also been linked but denied any wrongdoing.

Securities Counsel Field Dominique Gamboa urged caution.

“Early investors are paid using the funds contributed by recruits instead of profits generated by an actual business… People are enticed to invest with assurances that their money will earn interest… But once the investment is made, the scheme suddenly disappears,” Gamboa said.

Securities specialist Ramon King Ballesteros reminded the public to verify firms through the SEC:

“We conduct name verification and check incorporators against a watchlist to determine whether they match records in the system or require clearance from the enforcement department,” Ballesteros said.

The SEC said FCIG-YEPBIT’s “Trading Investment Project” promised high returns for US$500–US$3,000 investments and required recruiting others to withdraw earnings.

This scheme constitutes clear violations of Sections 8, 26, and 28 of the SRC and Section 11 in relation to Section 3(f) of Republic Act No. 11765, the SEC said.

Some villagers reported losing money. Luisa Alluad, a city worker, said she could not recover her second investment, while others lost tens to hundreds of thousands of pesos after initial withdrawals.

The public is warned to verify registration and authority of investment entities and refrain from participating in unregistered schemes, the SEC added./coa