SEC warns against F.L.A.G. Prosperity investment scheme
THE SECURITIES and Exchange Commission has issued a public warning against an investment scheme perpetrated by a Laguna-based beauty product distribution company called F.L.A.G. Prosperity Marketing Inc., also known as Freedom Life Advanced Global Prosperity Marketing Inc.
In an official advisory, SEC said that F.L.A.G. Prosperity Marketing was not authorized to solicit investments from the public, noting that this firm had not secured prior registration and/or license from the SEC to solicit investments as required under Section 8.1 of the Securities Regulation Code.
“…The public is hereby advised to exercise self-restraint from investing their money into such investment scheme and to take the necessary precautions in dealing with the above entity,” the corporate watchdog said in an advisory dated July 16.
The SEC noted that F.L.A.G. Prosperity Marketing was engaged in investment-taking activities where a prospective investor was enticed to invest one to 15 slots amounting to P1,500 each, promising a return of P2,200 or earning at least P700 in profits.
Based in Calamba City in Laguna, the SEC noted that this group was operating in different locations such as in the provinces of Batangas, Bicol, Quezon, Isabela, Cavite as well as in the Bicol region and National Capital Region.
People with information regarding the operation of this entity were urged to call the enforcement and investor protection department of the SEC at 584-7187 or 5847652.
According to its website, F.L.A.G. has as its underlying goods facial care products such as anti-acne, anti-wrinkle and rejuvinating solutions. The business name is registered under the name of one Raulito Escudero Malinao, who is also its manager.
The company claims that its mission was “to deliver fair opportunity to others by educating our distributors the innovative ways of risk-free financial management with integrity, by means of relational marketing for them to reach economic stability and financial freedom.”
One way to earn from F.L.A.G. Properity Marketing, based on its website, is to retail its products but distributors are also encouraged to earn from profit-sharing bonuses as well as through direct referrals.
On the profit-sharing bonus, the company claims that every active account reaching P2,100 are automatically entitled to encash P1,800 every Monday of the week and receive a cheque on Saturday. A person with 63 active accounts is thus projected to earn P106,200 under this scheme. To be active, the distributor must recruit at least two other people into the scheme.
