MANILA, Philippines - The Securities and Exchange Commission (SEC) has warned the public against an investment scam in Cavite.
“The SEC has received information that a group of persons, company or firm operating in Imus, Cavite, is offering investment opportunities to the public,†the agency said.
The investment scam promises substantial income in return for a capital investment ranging from P3,000 to P1.2 million.
Reports indicate that investors are promised to be paid P5,000 over and over again for every four associates an investor encourages to invest, the SEC said.
“The public is advised to exercise prudence in investing their money in what appears to be a high yield-high risk investment, which may turn out to be a fraudulent scheme or investment scam,†the corporate regulator said.
The new public warning is in line with SEC’s push for more investment protection.
Late last year, Pagadian-based Aman Futures Group Philippines Inc. was exposed as a P12-billion investment scam, defrauding thousands of politicians, professionals, businessmen and employees.
The SEC said it would perform its main role of regulating the corporate sector and protecting investors. Specifically, it is focusing on investment scams.
“SEC should be able to go [in investment presentations and businesses] and inspect the records of the company for compliance of the corporation code,†said SEC chairperson Teresita J. Herbosa.
“We want to have more provisions in the Corporation Code that will give us the power to stop immediately those kind of scams,†she added.
“Investment scams are all over the place. It will not stop, it will not even rest for a day or two,†Herbosa said.
For the stock price manipulation of agricultural product distributor Calata Corp., corporate regulators vowed to file more court cases as it completes investigations late this year.
“The first batch of respondents subject to complaints is now with the Department of Justice,†said SEC commissioner Manuel B. Gaite.
Gaite said the case covers just 30 percent of the stocks traded during the time the price was manipulated.
In May, Calata listed in the local bourse. Its shares opened at P7.50 apiece before inching up to close at P7.70 per share in its listing on May 23.
Its shares then surged to as high as P24, before suffering a steep drop.
Gaite said the SEC would complete further investigations and file additional court cases within the next 10 months.
Meanwhile, the SEC said it expects to record better performance this year as it implements reforms while corporate activities increase.
Herbosa said the agency recorded P2.707 billion in collections last year, up from P1.8 billion in 2011 and P1.3 billion in 2010.
Registration fees account for 85 percent of the collections, with the remaining 15 percent taken up by fines and penalties.
Justina F. Callangan, director of the SEC corporate finance department, said the SEC approved five initial public offerings (IPOs) last year that raised P28.8 billion from the public.
Corporate regulators also generated income from four follow-on offerings and 10 bond issuances that raised P96.5 billion.
Herbosa said the trend is expected to continue this year.
“We already talked to some companies and they are very optimistic this year. I talked to three of them already,†Herbosa said, referring to IPOs involving an energy firm, a power generator and a real estate company.
“The market seems to have more investors than the supply of shares and bonds,†Herbosa said.