SEC Compliance and Enforcement Department officer-in-charge lawyer Elmira Alconaba bared this after company officials failed to appear before the commission to shed light on its activities.
SEC Chairman Lilia R. Bautista earlier formed an investigating team when reports filtered out that Five Vision was soliciting investments for a monthly return of 10 percent.
According to Alconaba, the SEC investigating team found out that the company has been moving from place to place to escape summons from the commission.
The SEC wanted to determine if the firm is conducting a pyramiding operation that could mean losses for its investors. The SEC has been particularly strict since the uncovering of G. Cosmos and the resulting Unitrust bank fiasco.
SEC’s investigating team was present during a cocktail party, which Five Vision tendered for its clients last Saturday at Manila Midtown Ramada Hotel, Alconaba said.
During the cocktail party, newsmen who went to the place were barred by company officials who said that the function was a private affair. Investors who were interviewed said that they were invited to the meeting by company officials.
It was learned that investors are enticed to park their money with Five Vision for a minimum placement of P50,000. These investments are then pooled together for investments in the currency market in London.
The SEC said, however, that Five Vision is not allowed to solicit investments from the public, as it is not registered to do so. Bautista said only mutual fund companies, banks, investment houses and financing companies with quasi-banking licenses are allowed to do so.
Five Vision is suspected of boiler room operations whereby investors end up losing their money. Initial investigation reports, according to Alconaba, show that boiler room operations treat the interest that they give to investors as loans that when the time comes for the return of the principal, the investors are told that they lost their money in the currency trading market.