The Securities and Exchange Commission said Tuesday it issued a cease and desist order against Platinum Coin and Upsys Daily Trading for allegedly engaging in illegal investment schemes.
It said in separate orders dated April 4 the two companies should immediately cease and desist from further engaging in the unlawful solicitation, offer and/or sale of securities in the form of investment contracts without the necessary license.
The directive covers operators, directors, officers, representatives, salesmen and agents of both companies.
It also prohibited both firms from transacting any business involving funds in its depository banks, and from transferring, disposing or conveying any related assets to ensure the preservation of the assets of its investors.
The SEC also ordered the two companies to cease their internet presence relating to investment scheme.
It said that based on its investigation, Platinum Coin represented itself as an entity engaged in a legitimate lending business in Dipolog City, Zamboanga del Norte. It said Platinum Coin was enticing the public to invest anywhere from P1,000 to P650,000, with the promise of 15-percent to 50-percent guaranteed returns within 30 days.
Platinum Coin then executes an agreement with its investors and issues post-dated checks.
Investors are also promised an annual bonus of 20 percent of their investment, plus a 5-percent commission for new recruits.
Meanwhile, the SEC said it found that Upsys was offering unregistered securities by enticing to the public to invest between P500 and P150,000 with a promise of daily return of P10 to P6,000. In addition to the guaranteed returns, an investor will also earn 50-percent direct referral bonus, it said.
The SEC said the investment schemes of both firms involved the sale and offer of securities to the public in the form of investment contracts, where a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.
Section 8 of Republic Act No. 8799 or The Securities Regulation Code provides that securities should not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.