The Securities and Exchange Commission warned the public against fraudulent investment companies taking advantage of the COVID-19 pandemic to cheat investors.
The SEC has flagged at least 14 groups engaged in unauthorized investment-taking activities and other fraudulent activities since the declaration of a national public health emergency following the confirmation of local virus transmission in early March.
The SEC also warned the public against a text scam using the name of President Rodrigo Duterte.
Under the scheme, one would receive a text message stating that he or she won P750,000 from the President: Rodrigo Duterte Charity Foundation through an electronic raffle.
The foundation is not registered as a corporation based on SEC’s records.
The SEC also urged the public to stop investing in MAGINVESTKA.ONLINE (MIK.O), which purportedly trades bitcoin against the US dollar, and Azenzo-Online, which supposedly operates as an independent crowdfunding platform.
MIK.O is operated by a person or persons using the pseudonym “Mag Forex.” It entices the public to invest with a guaranteed 2 percent return daily or 200 percent for a period of 100 days.
Azenzo-Online, meanwhile, offers the “Deposit-Donation, Withdrawal-Blessing” scheme similar to that of Kapa-Community Ministry International. It promises a 30-percent return in as early as five, 10 or 15 days and a 100-percent “Donation Return” after 20 days.
Data from the SEC showed neither MIK.O nor Azenzo-Online registered as a corporation or partnership. They did not secure prior registration or license to solicit investments from the public, as required under Sections 8 and 12 of Republic Act No. 8799, or the Securities Regulation Code.
The SEC said those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes could be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years, or both under the Securities Regulation Code.
Meanwhile, those who engage in text scams also face criminal prosecution for violation of the Revised Penal Code, the Cyber Crime Law and Data Privacy Act.