SEC warns public vs six pyramiding firms

THE Securities and Exchange Commission (SEC) is warning the investing public against six companies soliciting investments without the proper registrations and using illegal schemes to entice investors.

The six companies utilize schemes along the lines of a Ponzi scheme and with extraordinary promised return on investment, the SEC said,

One of the firms, Web Mining, urges prospective investors to first contact the furm via its websites or mobile application.

Via the mobile app, one can choose any of the six types of investment plans worth P500. Investors are promised P3,750 for 120 days, P5,750 for 210 days, and P10,950 for 365 days.

For Oyala, investors are asked to register online and then choose from any of the three investment plans.

The investor can also earn from a direct referral “bonus,” direct recommendations, 30 percent from “stable” products, 5 percent from “welfare” products, 5 percent from “activity” products and 2 percent from referrals.

“The investor makes an investment of money in the minimum amount of P200.00 or a maximum of P777,777.00 in a common enterprise which is OYALA, and expects to earn profits from the efforts of others,” the SEC said.

For BKC Trading, prospective investors can also register online or be invited privately if they have an existing contract or a good profile with their BKC Savings brand.

“BKC Trading is offering investments to the public with a minimal amount of P30,000.00 up to P1,000,000.00. Investors may earn 12 percent up to 36 percent rate of return within 3 to 6 months,” the SEC noted.

Winvest, meanwhile, allegedly earns profit through Binance futures trading, promising returns of up to 3.5 percent daily or up to 50 percent earnings in just 14 days.

According to its website, two types of investments are available to the public, ranging from a minimal a P500 up to P100,000 per account with earnings as much as 3.5 percent for 14 days. Furthermore, investors may earn more through direct referral and “Unilevel” bonuses.

Mazama, another alleged pyramiding company, also call on investors to register wia a website or app, after which they can invest by topping-up through G-Cash.

The investor can invest from P500 to P1,000,000 and supposedly earn P38.40 to P165,000 daily or 7.68 percent up to 16.5 percent per day.

The investor can also earn 10-percent cash rewards plus cash coupons of 10 to 30 percent by inviting a friend to rent an “Advertising Machine”.

METATRADE, lastly, was said to be offering investments at a minimal amount of P500 up to P100,000.

“Investors may earn 30 percent after 5 days, 70 percent after 10 days and 400 percent after 30 days respectively. The company also said they can also earn a 5 percent referral commission bonus,” the SEC said.

Leaders or uplines were promised a P200 daily allowance, 2 percent weekly group sales commission, 1 percent group sales commission, and 1 to 5 percent “unilevel” commission.

“The offering and selling of securities in the form of investment contracts using a Ponzi scheme is not a registrable security,” the SEC said. “The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme,” it added.