The Securities and Exchange Commission has issued advisories to warn the public not to invest their hard-earned money in three firms that are soliciting investments without the necessary permits from the regulator.
Based on reports and information it gathered, the corporate watchdog issued warnings against investing with Trading Cartel, FDMS Business and Marketing Solutions Inc., and the Lele Gold Farm group or their representatives.
The SEC said that, a verification of reports against Trading Cartel showed that certain individuals affiliated with the Trading Cartel are offering an investment scheme where they promise a return of as much as 5 percent to 10 percent monthly interest.
“For the information of the public, TRADING CARTEL is not registered with the Commission as a corporation or partnership nor is it authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the Securities Regulation Code,” said the SEC.
The SEC said FDMS Business and Marketing Solutions by Frederick Bahalla Sabater, Marlon Salvador Adriano, Mylene Balayan Cureg, Daniel Dela Cruz Sta. Rita and Ronaldo Dizon Villena is also soliciting investments without the necessary license or authority from the commission.
FDMS, under its so-called Affiliate Learning Program, is offering investment plans through its Ride Trade Investment packages, namely: Pre-Subscription, Basic Subscription and Pro-Subscription, respectively.
The scheme involves a minimum investment of P3,000.00 up to a maximum of P1 million with promised earnings ranging from 30 percent up to 50 percent per month (P900.00 up to P500,000.00) or up to 150 percent to 250 percent in 5 months (P400,000.00 up to P2.5 million).
Records of the SEC show that FDMS was registered with the Commission on March 15, 2021. However, such registration merely grants juridical personality to the corporation but does not authorize it to issue, sell or offer for sale securities to the public nor undertake business activities requiring a secondary license.
Meanwhile, individuals or group of persons claiming to represent LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, are enticing the public, through social media to invest in said entity.
LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, is a mobile application that can be downloaded in Google Playstore. Based on the said mobile application, LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, offers the luxury of earning while playing the games.
As posted on the said mobile application, the public can invest by registering first, then they can choose from any of the six types of investment plan (farm land) worth P3,840.00, P15,360.00, P36,480.00, P52,800.00, P100,800.00, and P288,000.00, respectively.
The investor can earn P539.00 up to P11,520.00 weekly earnings or P2,310.00 up to P345,600.00 monthly income.
“The public is made aware that an ‘investment contract, which is a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, which is prominent in the scheme of LELE GOLD FARM/LELE GOLD COIN/GOLD FARM,” said the SEC.
Based on the Commission’s database, LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, is not registered as a corporation or partnership and operates without the necessary license or authority to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities.
“Further, the scheme employed by LELE GOLD FARM/LELE GOLD COIN/GOLD FARM has the characteristics of a ‘Ponzi Scheme’ where money from new investors are used in paying ‘fake profits’ to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” said the SEC.
It added that, “The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme’ which is fraudulent and unsustainable, is NOT a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.”