Online ‘investment scam’ victimizes Boholanos

TAGBILARAN CITY, Philippines — Hundreds of Boholanos have been duped into a suspected online investment scam, which was recently a subject of investigation and monitoring by the Securities and Exchange Commission (SEC).

The government's investment regulating body has warned the public to "exercise caution" before entrusting their money with Pluggle, an advertising website that offers monetary rewards for its members through recruitment of new members called downlines.

In Bohol, hundreds of unsuspecting Boholanos had joined the online bandwagon, dubbing themselves as "Bohol Plugglers."

The scheme used by Pluggle may not be similar to the infamous Klikmart Shopping Rewards Club—another dubious investment firm that had duped thousands of misinformed "networkers" in Bohol before it was busted by the National Bureau of Investigation (NBI) in a raid in 2015 —but the promise is always common: "Get rich as quick as possible with no effort at all."

In its latest advisory, SEC notified the public that Pluggle Inc., is "not authorized to solicit investments from the public as it has not secured the necessary license or permit from the Commission ..."

According to reports reaching SEC, new recruits — after purchasing an activation code from other members or leaders — were assured of making money by logging on to the website (pluggle.com.ph) "every day" and by getting new referrals.

The activation code can also be purchased using a bitcoin, a virtual currency, which according to SEC is not endorsed by the Bangko Sentral ng Pilipinas (BSP) and is "neither issued or guaranteed by a central bank nor backed by any commodity."

SEC said that those who act as brokers or agents of Pluggle, Inc. in convincing people to invest in Pluggle "may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of P5 million or penalty of 21 years imprisonment or both."

In its website, Pluggle names Google, Facebook, Instagram, Linkedin, Youtube, and Vimeo as its "Social Media Partner." According to whois.domaintools.com, pluggle.com.ph was registered on April 6 this year and is set to expire (unless renewed) on April 6 next year.

Pluggle.com.ph is registered under a certain Alexis Palma, with a publicly-declared address at Arayat Mansion, P. Bernardo Street, Kaunlaran, Quezon City. The domain registrant Palma, as indicated on domaintools.com, is allegedly connected to Goonline PH, Inc. It was not clear however whether Goonline is registered with SEC.

Based on Alexa ranking last week, pluggle.com.ph is the 192nd most visited website in the Philippines, and among millions of websites, it ranks 60,798 in global traffic.

Meanwhile, a third-party website (webtrafficlounge.com/pluggle-review-huge-scam-or-legit-system/) has a take on the activities of Pluggle. Nick Pratt, in his review article, said that Pluggle is one of the latest MLM (multi-level marketing) opportunities whose company logo is "trying to rip off Google."

The review said: "Like you’ll find with all pyramid schemes, Pluggle will be no more once recruitment activity eventually dies down. Most people will end up losing out, and only Alexis Palma will earn anything of value. In other words, this is (a) scheme that you’ll want to stay as far away from as possible." (FREEMAN)