Crackdown continues on fraudulent investment schemes

MANILA, Philippines - The Securities and Exchange Commission (SEC) continues its crackdown on fraudulent investment schemes after receiving a new report that another company is engaged in soliciting investments from the public.

In its latest advisory, the SEC said it has received complaints that Techno Innovation Marketing, also known as Time Corp., is engaged in illegal solicitation of investments.

Under the scheme, the company entices the public to invest in its dealership program for a minimum of P2,500 for a promise of 40 percent return/profit of P1,000 within a 15-day period plus other commissions or rewards including direct referral fee of P100, a gift certificate worth P200 and a chance to become an authorized dealer of mobile phone loads for all mobile/telecommunication networks.

The SEC said because of the alleged promises of Time Corp., a group of investors were enticed to participate and numerous members were recruited to join the dealership program.

The SEC said the company was unable to fulfill its promises to investors.

“Through its massive recruitment and solicitation, Time Corp. has generated a large sum of investment. However, Time Corp. has failed to give the profits it promised to investors, as well as the principal amount of investment,” the SEC said.

Furthermore, upon verification, the SEC also confirmed that Time Corp. is not authorized to solicit investments from the public as it did not secure prior registration and/or license or permit to solicit investments from the SEC as required under Section 8.1 of the Securities Regulation Code.

“In view thereof, the public is hereby advised to stop investing and recruiting other people to invest money into such scheme and to take the necessary precautions in dealing with the above-named entity and its representatives,” it said.