SEC warns public against OTC group's schemes
The Securities and Exchange Commission issued a warning to the public to stop, or not to invest, in any scheme being offered by OTCJKE, OTC Automated Trading Platform, and JKE International Limited.
“Based on information received by the Commission, individuals claiming to represent OTCJKE/OTC AUTOMATED TRADING PLATFORM/ JKE INTERNATIONAL LIMITED are enticing the public to invest their money in said entity,” the SEC said.
It noted that, “As posted in its official Facebook group, OTCJKE/ OTC AUTOMATED TRADING PLATFORM/ JKE INTERNATIONAL LIMITED represents itself as a high-frequency trading encryption platform where investors can earn 3 percent to 8 percent daily earnings withdrawable anytime through a crypto wallet or a G-cash account.”
“It also states that it is a cryptocurrency subsidiary of the British JKE group and is one of the companies that supports the Ukraine Crisis,” the corporate watchdog said.
As gathered by the Commission, interested individuals are required to download the application of OTCJKE, OTC Automated Trading Platform, and JKE International Limited from the play store or app store to register and create an account.
After registering, the investors would be asked to deposit money in dollars through Binance or G-cash. Once the money is deposited through the application, the individual may now start using the mining bot to earn and their income would depend on the amount of money deposited as shown in the table posted in their Facebook group.
The member may also earn income commission by getting “team members” or recruiting others to invest. The trading platform is advertised as automated and 100 percent legal.
The SEC said the transactions entered by OTCJKE, OTC Automated Trading Platform, and JKE International Limited through their online trading platform are considered securities in the form of “investment contracts” which must be registered with the Commission.
The elements are all present as there is an investment of money into the common enterprise known as OTCJKE, OTC Automated Trading Platform, and JKE International Limited with the expectation of profits depending on the amount of money invested.
“Furthermore, the investment scheme of OTCJKE/ OTC AUTOMATED TRADING PLATFORM/ JKE INTERNATIONAL LIMITED has the characteristics of a Ponzi Scheme because of the promise of an exorbitant rate of return with little to no risk at all to the investors,” said the SEC.
It noted that, “The offering and selling of investment contracts using the ‘Ponzi Scheme,’ which is fraudulent and unstable, is NOT a registerable security. The Commission will not issue a License to Sell Securities to the public, persons or entities engaged in such business or scheme.” The watchdog also pointed out that OTCJKE, OTC Automated Trading Platform, and JKE International Limited are not registered with the SEC either as a corporation or a partnership.
They are also not authorized to solicit investments from the public since it has not secured prior registration and license from the Commission.
Aside from warning the public, the SEC said those who act as salesmen, brokers, dealers or agents or claim to act as such for OTCJKE, OTC Automated Trading Platform, and JKE International Limited in selling or convincing people to invest in the investment scheme may be prosecuted and held criminally liable and penalized with a maximum fine of P5 million or penalty of 21 years of imprisonment or both.