SEC names dubious investment trading firms

CEBU, Philippines — The Securities and Exchange Commission (SEC) has ordered four companies to stop from engaging in investment solicitations.

SEC-Cebu Extension Office officer-in-charge, lawyer Alma Marie Dalena, named Wonkacash or Wonka Cash App Financial Consultancy Services, IX Trade/IXTRADE, Learn and Earn Online (with trading partners 247 Cryptotrading Fx, 247 Cryptotrade Online, Exchangestock, Binary Options Trading and Wolves Options), and Investrade Marketing/Investrade Digital Marketing Services for engaging in investment trading without the necessary certificates and registration from SEC

Dalena warned the public from dealing with entities and individuals who offer “promising investments which offer ridiculous return of your money but with little or no risk at all.”

In a statement, the SEC urged the public to check first before investing their money.

“We urge the public to not easily be swayed with sweet promises of easy money. Learn to spot the scammers especially in your social media accounts and always fact-check,” Dalena said in a statement.

According to the investigation made by SEC Enforcement and Investor Protection Department, the Learn and Earn Online, which is operating from Kenya appears to be the broker for 247 Cryptotrading Fx, 247 Cryptotrade Online, Exchagestock, Binary Options Trading and Wolves Options, which are said to be based in the United Kingdom.

"It offers free seminars and tutorials on how to invest in cryptocurrencies and how to invest online and then lures the public to invest in these online companies with the promise of lucrative returns with little or no risk," the SEC said.

"Interestingly, Learn and Earn Online is operated by representatives that use synthetic or fraudulent identities, namely: Confidence Friday, Idong Umoren, Dima Viad Sasha, ITZ Smart Livinus, Lawrence Patricia, and Lawan MuhamadD MLS, among others," it furthered.

The investigations showed the entities offer opportunities ranging from 18% to 1,000% income per week which is indicative of a Ponzi scheme.

A Ponzi scheme is where returns to early investors are likely to be paid out from the investments of new investors and not out of the companies’ profits. — GMR (FREEMAN)