SEC files cases vs 3 alleged Ponzi firms

MANILA, Philippines - The Securities and Exchange Commission has filed before the Department of Justice two cases against the group behind EmGoldex, Global Intergold and Prosperous Infinite Philippines Holdings Corp. for selling unregistered securities in violation of the securities law.

To prevent these companies from further victimizing more people, especially overseas Filipino workers, the SEC issued a cease-and-desist order prohibiting any and all persons acting on their behalf from soliciting, accepting or receiving from others money for the purpose of investing in any contract.

EmGoldex, Global Intergold and Prosperous Infinite were charged for selling shares without the prior registration and the necessary license.

Each violation of the Securities Regulation Code is punishable, upon conviction, with a fine of not more than P5 million or imprisonment of seven to 21 years, or both.

The filing of the cases followed months-long investigation by the SEC.

With the help of the Department of the Interior and Local Government, Philippine National Police, and National Bureau of Investigation, the SEC was able to gather evidence including affidavits of two victims who are active PNP officials.

The group conducts its activities online. Crimes committed in cyberspace and through the use of information and communication technologies (ICT) carry a higher penalty as provided under the Cybercrime Prevention Act of 2012.

It is headed by Kevin Miranda, Ryan Manuit, Charles Juiz Padilla, Rabel Ymas, John Rafael Calicdan, and Paul Alviar to face the public and take accountability for their actions.

They have reportedly raised about P2.72 million from at least 95 investors. One of the two PNP officials invested in EmGoldex in desperation after his house burned down early this year.

According to Lalaine Monserate, assistant director of the SEC’s Enforcement and Investor Protection Department, the entities operate a classic Ponzi scheme of getting cash investments and giving high return payouts thru the recruitment of people.

“As more people are recruited into the scheme, it eventually reaches a point wherein it can no longer sustain its payouts, and payments will stop thereby leaving investors penniless,” the SEC said.