SEC warns public vs investing in The Tipsy Tavern
MANILA, Philippines —The Securities and Exchange Commission (SEC) has warned the public against investing in an alleged bar and events-themed Ponzi scam based in Malabon City.
The corporate watchdog said the firm, The Tipsy Tavern, was found to be soliciting investments from the public without securing the necessary license to do so.
“The public is hereby advised not to invest or to stop investing in the investment scheme being offered by The Tipsy Tavern 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 behalf of The Tipsy Tavern,” the SEC said.
It said the company, operated by its representative Danielle Lance Alarcon, is actively selling investment contracts through the Wisteria Lane/Wisteria Lane Suites’ pages on Facebook.
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The SEC said investors were told they could earn profits of P25,000 up to P50,000 per month on a P500,000 investment or up to 120 percent a year. Investors will also get discounts when dining at The Tipsy Tavern and also earn another 2.5-percent commission for investor referrals.
‘Ponzi scheme’
It said The Tipsy Tavern was not a registered corporation and also lacks the necessary license to solicit investments.
“The scheme employed by The Tipsy Tavern has the characteristics of a ‘Ponzi scheme’ where money 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 SEC said.
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“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.
