The Securities and Exchange Commission is warning the public not to invest in the schemes being offered by Money Game Hub or MGH Trading OPC as they do not have the necessary license to solicit investments.
“Those who act as salesmen, brokers, dealers or agents of MONEY GAME HUB / MGH TRADING OPC in selling or convincing people to invest in their investment schemes including solicitations or recruitment through the internet may likewise be prosecuted and held criminally liable,” said the SEC.
Under the Securities Regulation Code, they can be penalized with a maximum fine of P5 million or maximum penalty 21 years imprisonment or both.
Also, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly.
“Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed,” warned the SEC in its advisory.
The SEC said it has received information that Money Game Hub and MGH Trading OPC are engaged in unauthorized investment-taking activities.
MGH is allegedly a perfume-distribution marketing company and is headed by Alexander Libres Salvador who entices the public to join the company and invest a minimum of P500.00 and promises seven times (7X) return on investment for a period of 40 days.
Thus, an initial investment of P500.00 will have a return of P3,500.00 after 40 days.
The Money Game Hub is designed as a Multi-level marketing platform providing “player packages,” referral bonuses, encashment bonus, as well as a casino feature called Money Spin, said the SEC.
“As the aforementioned schemes involve the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public,” said the SEC.
It added that, “The public is hereby informed that MONEY GAME HUB is not registered as a corporation and partnership. However, MGH TRADING OPC is registered with the Commission as a One Person Corporation.” “Nonetheless, both MONEY GAME HUB / MGH TRADING OPC are not authorized to solicit investments from the public as they did not secure prior registration and/or license to solicit investments from the Commission,” noted the SEC.
The commission reminded the public that “the issuance of a Certificate of Incorporation only grants the said entity juridical personality but does not constitute an authority or license for the corporation to engage in activities such as solicitation of investments, issuance of investments contracts, offering and sale of investment contracts that require a secondary license.”