Acting on a letter-complaint from one of the company’s so-called participants, the SEC team composed of an examiner and an investigator was sent to the offices of Five Vision in Metro Manila and served an inspection order on the firm.
The SEC was informed of an alleged irregularity in Five Vision’s operations, wherein the "participants" in its foreign currency trading scheme are promised a guaranteed "benefit" of 10 percent monthly return on their "participation."
The complainant alleged that their "participation" involves a minimum amount of P50,000 or $1,000 which is then forwarded and traded supposedly in London and Denmark, although the company withholds information to their "participants" on where and what kind of forex or securities instruments are involved.
Based on the inspection order, Five Vision was given until Tuesday this week to submit relevant documents such as financial statements, ledgers or journals, for the SEC to determine if the firm is complying with the Corporation Code and the Securities Regulation Code.
Five Vision was registered in the SEC only last Oct. 15, 2001 to engage in management consultancy and financial services, including forex trading.
The SEC has been cracking down on the so-called boiler-room schemes proliferating in the country which have victimized thousands of mostly foreign investors around the world through fraudulent investment schemes.
A boiler room operation basically involves a duly-registered company, using the Philippines as base, which employs network marketing and selling of unregistered securities or investment contracts, enticing potential clients with a promise of guaranteed rate of return on their investments.
Once money has been collected from the unsuspecting clients or when there is knowledge that the government is closing in on the illegal practice, these companies then close shop, leaving the investors with nothing , and merely re-open under a different name to resume their operations and scout for other victims.