THE Securities and Exchange Commission (SEC) on Thursday filed criminal charges against those behind another Ponzi scheme perpetrated by incorporators of Prosperous Infinite Philippine Holdings Corp. (PIPHC), which earlier used the names EmGoldex Philippines and Global Intergold (GIG) to sell and distribute unregistered securities to the public without a license.
Named respondents in the complaint were Kevin Miranda, Ryan Manuit, Charles Juiz Padilla, Rabel Ymas, John Rafael Calicdan and Paul Alviar.
They are facing charges of violation of Sections 8 and 28 of the Securities Regulation Code (SRC), which carries a fine of not more than P5 million or imprisonment of seven to 21 years, or both.
The SEC filed the case after it issued a cease and- desist order on Thursday agains Emgoldex, PIPHC and GIG.
Originally, the entity which employed the Ponzi scheme was EmGoldex.
However, in response to SEC advisories warning investors against dealing with EmGoldex which is not a registered corporation, it renamed itself to GIG.
PIPHC was then incorporated sometime in August 2015 to aid and assist GIG investors who were unable to obtain a return on their investment.
Currently, EmGoldez is already banned in other countries based on international media reports.
The filing of the charges came after SEC’s months of investigation on the activities of the groups.
The SEC said, through the assistance of the Department of the Interior and Local Government, Philippine National Police (PNP), National Bureau of Investigation and National Intelligence Coordinating Agency, it was to gather evidence including affidavits of two victims who are active police officials.
Based on its probe, the firms were able to recruit at least 95 investors.
On the affidavits of the policemen, an estimated P2.7-million cash investment has already been made by them with an estimated return loss of at least P11 million.
One of the two PNP officials invested in EmGoldez in desperation after his house burned down early this year, the SEC recounted.
SEC Enforcement and Investor Protection Department Assistant Director Lalaine Monserate said the entities operate a classic Ponzi scheme of getting cash investments and giving high return payouts through the recruitment of people.