SEC revokes corporate papers of Ponzi scheme perfumery
MANILA, Philippines—Ponzi-scheme perfumery ScentkoWorld Corp. saw its corporate registration revoked by the Securities and Exchange Commission (SEC) after being caught illegally soliciting investments from the public.
The SEC said in a statement on Thursday (April 7) that it had revoked the corporate papers of ScentoWorld and Brendahl Cruz Holdings, companies said to be affiliated with Brendahl Cruz, described on the company’s Facebook page as the president and CEO.
The SEC added that the firms were found to be “offering and selling securities without the necessary secondary license from the commission.”
The SEC said their activities were “within the context of a Ponzi scheme”, a type of investment scam which relies on money paid by new investors to generate returns for its participants.
The corporate regulator said the companies have been enticing investors to buy perfume and beauty product packages starting at P5,000 to earn as much as 400 percent of their investment within 30 days.
“The promised return will depend on how soon the companies can recruit new members. Members can also earn by recruiting more people into the program,” the SEC said.
The SEC said the public was warned against investing in ScentkoWorld and Brendahl Cruz Holdings as early as July 31, 2019 through an advisory. A cease and desist order was then issued against the companies on Sept. 24 that same year, it said.
As a form of security, investment contracts must be registered with the SEC before they can be sold or offered within the Philippines, pursuant to Section 8 of Republic Act No. 8799, or the Securities Regulation Code.
The business headlines in under one minute
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.