SEC asked to probe investment solicitation scheme of certain firms

The Securities and Exchange Commission (SEC) has been asked to look into the investment solicitation scheme of Glasgow Credit and ICS Export Inc. which reportedly offers an interest rate of 10 percent a month on money placements.

The appeal was made by several investors, led by a certain Dr. Reggie Lim who told radio station DZBB that he invested P2 million on the promise of a return of 10 percent a month but which he said he is now in danger of losing.

Lim alleged that last month the checks he received had bounced and that repeated requests for redemption had fallen on deaf ears. He claimed there were about 300 investors whose checks were similarly dishonored. They include policeman, housewives, professionals, and other individuals.

Glasglow Credit is reportedly run by former officials of Five Vision Consultancy earlier tagged by the SEC as a boiler room operation.

The company allegedly issues post-dated checks to cover for the interest payments and the principal in exchange for the money placements of investors.

Earlier, the SEC warned the investing public to be careful in falling for investment schemes that promise fantastic returns following the uncovering of the operations of several boiler room firms in the metropolis.

These boiler room firms go from one office to another and show no visible sign of business activity. They proffer investment instruments and pay high rates of return.

However, these firms disappear after getting the money of investors, the SEC said.

In the case of Five Vision, the SEC conducted an exhaustive probe into the operation of the company and discovered that it had transferred its operation.

The company was probed for its boiler room operation and pyramid scheme.