The Securities and Exchange Commission (SEC) has advised the public against dealing with two investment firms, Lushapple.ph and Way Home Store Philippines Inc. (WHSPH), due to their unauthorized solicitation of investments.
In separate advisories posted on its website, the SEC said these firms are selling investment contracts to the public without the required license from the commission.
Based on information and reports received by SEC, Lushapple.ph is enticing the public through social media platforms to invest in the said entity with promised earnings of up to 40 percent interest.
The said entity claims it would help investors grow their money by investing in several businesses specifically in selling electronic devices, gold, Luxury items, appliances, and others.
A prospective investor will not do anything to earn from the money they invested as Lushapple.ph will be solely responsible for the operation of the business.
Meanwhile, WHSPI is reportedly an entity enticing the public through social media platforms to invest through a scheme called “Tasking and Recharging”.
The said Tasking and Recharging scheme offers clients online jobs that require prospective investors to perform tasks for the promise of receiving monetary rewards or commissions.
SEC said this scheme involves the offering and selling securities in the form of investment contracts as defined under Section 3.1 of the Securities Regulation Code. “An investment contract exists in Tasking and Recharging Scheme as there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others,” SEC said.
Moreover, SEC said WHSPI is found to be presenting a copy of a bogus or fake Certificate of Incorporation as a means to entice the
public to invest therein.
SEC said both Lushapple.ph and WHSPI are not registered with the commission and are not licensed to sell investment contracts to
the public.
“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme’ which is fraudulent and unsustainable, is not a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme,” SEC said.
