The Securities and Exchange Commission has issued a cease and desist order against Fidelity Capital Investment Group and Yepbit Exchange PTY Ltd. for illegally soliciting investments from the public.
In the order dated Feb. 2, the SEC directed the firms and their agents to stop investment-taking activities following reports that FCIG was soliciting investments in Cagayan Valley, particularly in Isabela, without the required registration and licenses.
The order also directed the officers, agents, recruiters and brokers of both FCIG and Yepbit to stop soliciting investments. Commission records show neither firm is registered with the SEC Philippines. The agency warned that their continued operations pose a risk of fraud and financial harm to the public and violate the Securities Regulation Code.
“Given the entity’s continued operation of unauthorized investment-taking activities, the commission finds the issuance of a cease and desist order is necessary to prevent fraud, injury or harm to the public and financial consumers,” the order read.
Based on the SEC investigation, FCIG agents were actively soliciting investments both through online platforms and in Gamu, Isabela. The SEC described the scheme as a high-yield investment opportunity requiring a minimum investment of $500 and allowing investments of up to $3,000.
The scheme requires investors to maintain a GCash account to withdraw purported earnings and make additional investments. Upon joining, investors are granted access to the Yepbit trading platform, where the alleged investment activities take place.
“All told, this office is firmly convinced, based on substantial evidence, that FCIG, an unregistered entity, together with its agents and/or solicitors who lack the requisite license or authority to sell or offer securities… are engaged in unauthorized investment activity, which resembles a Ponzi scheme that must be immediately restrained,” the order read.
