SEC warns public against new investment schemes
Joefel Ortega Banzon (The Freeman) - September 6, 2019 - 12:00am

CEBU, Philippines — The Securities and Exchange Commission (SEC) warned the public against investing in G. M. Pineda Construction and Development and in JY Beauty and Fashion Marketing, which have been promising investors with unrealistic high returns.

In an advisory released yesterday, the country’s corporate regulator advised the public to be vigilant against these groups as these are not authorized to solicit investments from the public.

G. M. Pineda Construction and Development solicits investments from the public with a promise of huge profits at the rate of 15% to 20% per month for a six month lock-in period and guaranteed with postdated checks.

JY Beauty and Fashion Marketing on the other hand, is enticing the public, through

Facebook or other social media networks, to invest their money in high-earning investment

products with as high as 600% interest for more or less 1 month.

For instance, an investor will get P30,000 in return for a P5,000 investment.

The above-mentioned investment schemes are considered as securities in the form of an investment contract that is subject to the regulatory authority of this Commission.

SEC said both companies are not registered with the Commission and do not hold the necessary documents to engage in investment activities.

The Commission reiterates its warning to the public to be cautious in investing their money in these types of schemes, which may turn out to be fraudulent.

People who act as salesmen, brokers, or agents of these unregistered investment entities in selling or convincing people to invest in these schemes may be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code, with a penalty of up to P5 million or imprisonment of up to 21 years.

SECURITIES AND EXCHANGE COMMISSION
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