SEC warns against movie-themed scam
INQUIRER.net FILE PHOTO
MANILA, Philippines — There’s no honey in the Movie Daddy website, which the Securities and Exchange Commission (SEC) flagged as a possible Ponzi scheme that preys on unwitting victims.
The corporate watchdog issued an advisory warning the public against buying subscription plans of Movie Daddy, which allows members to earn extra cash while watching and rating movie trailers.
The SEC found the platform was selling investment contracts without the required permits and licenses and was likely a Ponzi scheme — a type of scam that generates “returns” by using money collected from newer investors instead of any legitimate investment activity.
“In view thereof, the public is hereby advised not to invest or to stop investing in the investment scheme being offered by Movie Daddy, and its representatives,” the advisory showed.
According to the SEC, the online platform offers subscriptions starting from $40 “Baby Bear” plans to $2,990 “Legend” plans and promises monthly returns of $48 to $3,600 to members, depending on their chosen package. An investor can also earn referral bonuses from plan upgrades.
Article continues after this advertisementThe SEC said Movie Daddy was not registered as a corporation or partnership and operates without the necessary license to solicit, accept or take investments or placements from the public.
Article continues after this advertisement“Further, the scheme employed by Movie Daddy shows indication of a possible Ponzi scheme where monies from new investors are used in paying ‘fake profits’ to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the corporate regulator warned.
“The offering and selling of securities in the form of investment contracts using the Ponzi scheme which is fraudulent and unsustainable, is not a registrable security. The commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme,” it added.
The SEC warned individuals from acting as salesmen, brokers, dealers or agents of Movie Daddy. It reminded the public that perpetrators may be held criminally liable under Section 28 of the Securities Regulation Code and be penalized with a maximum fine of P5 million and imprisonment of 21 years.
Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue to asses appropriate penalties and taxes, the SEC added. It asked the public to share information regarding the operations of Movie Daddy or its representatives to [email protected].
