The Securities and Exchange Commission warned against investing their hard-earned money in Angel Investor Group Inc., a company not authorized to solicit investments from the public.
The SEC said in an advisory while Angel Investor was registered in 2000, it did not have a secondary license that could enable it offer, solicit or sell investments or securities to the public.
An initial investigation gathered by the SEC showed that individuals or a group of persons representing Angel Investor were enticing the public to invest their capital in the company through the internet.
Angel Investors is reportedly promising investors 100-percent profit after one month plus 1,500 bonus share.
“Such activity requires secondary license from the commission and the securities of investment product should be registered with the SEC before they can be offered or sold to the public under Section 8 and 12 of the Securities Regulation Code,” the SEC said.
“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to make the necessary precaution in dealing with Angel Investor Group Inc. or its presentative,” it said.
The SEC said those who act as agents involved in Angel Investor in convincing people to invest in the investment scheme might be held criminally liable and could face a penalty of P5 million or 21 years of imprisonment or both.
The SEC also warned those who invite or recruit people to join or invest in the venture or offer contracts to the public, saying they might also be held liable and sanctioned or penalized.
The warning is the first advisory issued by the SEC this year against a company engaged in illegal activity.
The SEC in 2018 issued advisories against some 43 companies allegedly involved in the sale of securities or investment contracts through online without prior registration with the corporate regulator.
Some of the companies are also engaged in selling “virtual currency” through initial coin offerings, which is not yet allowed by the SEC.