SEC ramps up drive vs scammers

Business is booming for enterprising criminals who are busy rolling out a constant stream of get-rich-quick schemes that prey on a populace struggling with soaring consumer prices.

The Securities and Exchange Commission (SEC) said in the category of lending and financing companies alone, it had so far revoked 2,084 licenses from companies who failed to complete their requirements.

It also cancelled the certificates of authority of another 39 financing and lending companies “due to various violations of applicable rules and regulations” and coordinated with Google Philippines to remove 33 unregistered online lending platforms from the Google Play Store.

This has not deterred new scams from cropping up and the barrage of fresh schemes continue.

The corporate regulator remains vigilant in issuing advisories to warn the public while its enforcement arm continues a crackdown on companies perpetuating these crimes.

For this year alone, the SEC has issued about 20 advisories, or one every two days, warning the public from investing in illegal investment schemes.

Its latest warning was made against a company called Platinum Coin/Platinum Coin Pawnshop.

The company, whose registered business name was associated with a certain Jessieboy Momoy Decenan, was offering illegal investment packages promising fantastic returns of up to 50 percent per month.

The SEC said Platinum Coin portrays itself as a lending business when it was likely a Ponzi scheme, which generates fake returns by using money collected from newer investors instead of any legitimate investment activity.

“It was found out that Platinum Coin/Platinum Coin Pawnshop is engaged in unauthorized online lending business/activities without a corresponding certificate of authority to operate as a lending company from the Commission pursuant to the Lending Company Regulation Act,” the SEC said.

“In view thereof, the public is hereby advised not to invest or to stop investing in the investment scheme being offered by Platinum Coin/Platinum Coin Pawnshop vis-à-vis Jessieboy Momoy Decenan as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalt of Platinum Coin/Platinum Coin Pawnshop vis-à-vis Jessieboy Momoy Decenan,” it 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 be correspondingly assessed, the SEC added.