The Securities and Exchange Commission (SEC) has warned investors against transacting with E-Ton Trading, which has been offering investments to the public without proper registrations.
The entity, which also goes by the name of Eton Phil Trading and E-Ton Trading: Profit Sharing, solicits four types of investment packages via Facebook groups.
The investment packages range from P5,000 to P100,000 with a promised return of 20 percent to 50 percent a month.
E-Ton also said that the investor could also earn a rebate bonus of 5 percent for fresh cash-ins. Plus, the longer the lock-in period, the higher the investor may earn.
Investment contract
The SEC noted that the entity was providing an investment contract to the public, which is a form of a security that requires regulatory licenses.
“Based on the commission’s database, E-Ton Trading … is not registered as a corporation or partnership and operates without the necessary license and/or authority to solicit …,” the regulator stressed.
The agency also flagged that the entity’s investment package offerings showed “characteristics” of a “Ponzi scheme,” which is a scam that promises high rewards.
Such a form of security offering is deemed “fraudulent and unsustainable” and is “not a registrable security,” the SEC stressed.
The SEC said that salespersons, brokers, dealers, agents, representatives, promoters and endorsers of E-Ton investment packages might be criminally liable under the Securities Regulation Code.
Those found guilty might be penalized with a minimum fine of P5 million or imprisonment of 21 years or both.
“Furthermore, 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 said.