SEC strips corporate license of Ponzi scammer

The Securities and Exchange Commission (SEC) has stripped an entity called Togachat Academy Philippines Inc. of corporate license for perpetrating a Ponzi-type investment program.

A Ponzi scam is an investment fraud which lures investors with promises of high financial returns or dividends. In such a scheme, the operator pays initial disciples by the amount invested by subsequent investors while bulk of the investment remains with the scammer.

Under its investment program, Togachat entices the public to avail of a package of Toga credits. The company promised investors that they can use such credits to buy shares in Toga Ltd. upon its supposed listing on Nasdaq.

The company offers seven packages from as small as $100 to as high as $100,000 in exchange for 200 to 500,000 credits. It encourages members to recruit another investor by giving Toga credits equivalent to 50 percent of what the new investor would avail of. Members may earn additional credits from pairing bonuses.

As early as July 2019, the SEC had issued an advisory warning the public against investing in Togachat. On December 17, 2019, it further issued a cease and desist order against the company, its officers, directors, representatives, salespersons, agents and any and all persons claiming and acting for and in their behalf.