THE Securities and Exchange Commission (SEC) on Thursday issued a series of warnings against two companies that accepted investment money from the public, promising huge returns, despite the lack of registration from the agency and from other government entities.
In its public advisories, the country’s corporate regulator issued warnings against J79 Galore Online Marketing and Goldxtreme Trading Co. as these companies still operate without the necessary registration papers. The SEC said J79 Galore claimed that one’s P3,000 investment can grow up to five times to P15,000 by just recruiting a certain number of people who will invest in the company.
The agency said the company is not registered with the SEC either as a corporation or as a partnership.
“There being no primary license, it is, likewise, not authorized to solicit investments, which require a secondary license,” the SEC said.
It then advised the public to exercise “self restraint” from investing their money such high-yield, high-risk investment scheme.
The agency said it received information Goldxtreme is also soliciting from the public as much as P5,000 per slot, with a promise of a return of investment of almost five times at P24,450 net of taxes, upon exit of each slot on the table.
Members are also obligated to recruit two individuals for every slot bought.
The SEC said Goldxtreme may be registered with the agency but as a partnership with the primary purpose of wholesale and retail sales of gold jewelry and other products, such as fashion accessories, cellphone loans, prepaid cards among others.
“However, Goldxtreme is not authorized to solicit investments from the public as it did not secure prior registration and/or license to solicit investment from [the SEC],” the agency said.
The agency also advised the public to take necessary precautions on dealing with the entities and its representatives.