The Securities and Exchange Commission (SEC) has issued an order to stop the investment solicitation activities of Chiyuto Creative Wealth Documentation Facilitation Services, which is hawking to the public a “double-your-money” roulette game.
In an order dated Feb.1, the SEC directed the Chiyuto group, a sole proprietorship and a one-person corporation (OPC), to cease and desist from selling or offering securities in the form of investment contracts until it has secured the necessary license.
The SEC enjoined Chiyuto and Creative Wealth OPC from transacting business involving funds in its depository banks and from transferring, disposing, or conveying related assets to preserve them for the benefit of affected investors.
In a letter dated Feb. 2, the SEC Enforcement and Investor Protection Department directed Chiyuto to show cause why its certificate of registration should not be revoked and no administrative sanctions should be imposed against it and its directors, officers and nominees.
Chiyuto has offered investments to the public with promised returns of 100 percent in one day, 30 days or 45 days, depending on the outcome of the roulette, without a license, the SEC said.
Under the scheme, an investor places as low as P1 to as much as P1 million. Chiyuto will then spin the roulette to select the payout schedule and issue a promissory note to the investor stating the day when the guaranteed earnings could be claimed.
Chiyuto also offered a 5-percent referral commission and held raffles with brand new cars and motorcycles as prizes to attract investors.
“[T]he act of Creative Wealth OPC and Chiyuto in selling/offering unregistered securities operates as a fraud … which, if unrestrained, will cause grave or irreparable injury or prejudice to the investing public,” it added. —DORIS DUMLAO-ABADILLA