SEC strips firm’s license for Ponzi-like scheme

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

The SEC Enforcement and Investor Protection Department issued the order of revocation on Jan. 23, after finding out that Togachat was selling or offering securities to the public without license from the SEC.

Under its investment program, Togachat entices the public to avail of a package of “Toga Credits,” with the promise that they can use such credits to buy shares in Toga Ltd. upon its supposed listing on Nasdaq.

The company offers seven packages where investors can put in as little as $100 or as high as $100,000 in exchange for 200 to 500,000 Toga Credits. Investors may pay for a package in US dollars or its peso equivalent.

Investors who recruit other members are given Toga Credits equivalent to 50 percent of what the new investor would avail of.

The company’s agents also claim that Toga stocks are traded on Toga Exchange, described as an internal platform of Toga Ltd. where the buying and selling of stocks occur.