SEC warns against new investment scam

MANILA, Philippines - The Securities and Exchange Commission (SEC) has warned the public anew against high yield investment schemes, this time targeting mostly domestic helpers.

In a notice issued Friday, the SEC asked the public to beware of investment programs or schemes offered by companies or groups of people operating in Cagayan, Ilocos Norte, Camiguin Island and Cagayan de Oro.

The SEC issued the investor alert after it received reports some people or companies have been offering investments to the public, particularly domestic helpers, with a promise of hefty returns.

Under the scheme, an investor stands to earns P900 a month for every P100 investment made.

“The public should not invest their money in such fraudulent or suspicious transactions because the promise of earning a very high income which is too good to be true is false or an investment scan,” the SEC said.

The SEC has asked the public to be vigilant and immediately report instances of solicitation from dubious people.

SEC commission secretary Gerard Lukban told the public to be extra cautious in parting with their hard-earned money in what appears to high-yield risk investments which may turn out to be a fraudulent scheme.

Lukban said the public should make sure the company they are investing in are registered with the SEC and have an approved registration statement.

This follows the investment scandal involving Aman Futures which allegedly bilked some 15,000 Filipinos of around P12 billion in a Ponzi scheme.

A corporation can not operate or transact business without a license from the SEC.

A Ponzi scheme is a type of investment fraud that promises investors exorbitant interest if they loan their money. As more investors participate, the money contributed by later investors is paid to the initial investors, purportedly as the promised interest on their investment.  It works in its initial stages but inevitably collapses as more investors participate.

The SEC filed before the Department of Justice a criminal complaint against officials of Aman Futures for selling unregistered securities to the public and engaging in fraudulent transactions in violation of the Securities Regulation Code.