The Securities and Exchange Commission (SEC) issued warnings against three business groups that were illegally soliciting investments from the public.
The companies were Elizabeth Esty Save Lives Binary Option Trading Inc., Bitprime/ Bitprime Computer Software Trading/ Ariane Estolonio-Bitprime Software OPC and Upsys Daily Trading.
The corporate regulator said these firms lacked the required operating licenses and appeared to be operating classic Ponzi scams, which generate fake returns by using money collected from newer investors instead of any legitimate investment activity.
According to the SEC, Elizabeth Etsy is a crypto-themed scheme that promises to double investments within days.
Bitprime offers several investments with promised earnings of up to 45 percent in 15 days.
Upsys, headed by CEO and founder John Villarino, also offers several investment plans promising profits of up to 4 percent per day or roughly 120 percent per month.
“Such actions resemble a pyramid/Ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products/services, and investors are paid using the contribution of new members,” the SEC said.
“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,” the corporate regulator added.
Those found to be selling illegal investments may be held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of P5 million or imprisonment of 21 years.
The names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes can be correspondingly assessed, the SEC added.