SEC halts 3 firms involved in shady investment scheme

The Securities and Exchange Commission (SEC) has issued a cease-and-desist order against three newly incorporated companies selling allegedly illegal investment products to the public.

The three companies are GoldXtreme Trading Co., Grandtime Automobile Inc. (Grand Time) and Success200 International Corp.

“These entities are all offering investments to the public without secondary license from us,” SEC assistant director in charge of investigations and prosecution division Lalaine Monserate said in a text message.

Although these companies were incorporated in 2015 under the rules of the SEC, they still needed a secondary license to be able to sell investment products to the public.

GoldXtreme presents itself as a trading company selling gold products.  It invites people to put in P5,000 as initial investment and to recruit other investors in order to earn P25,000.  They were given P500 as bonus for each referral.

The SEC investigated GoldXtreme beginning last year, sending agents who posed as prospective clients.  It found out that the company had been offering its scheme publicly through online advertisements, video presentations and invitations to the public.

Success200, on the other hand, said “it can turn an investment of P1,800 into P10,000.”  The company used Facebook to promote its investment scheme.

Grand Time, meanwhile, was incorporated with the primary purpose of operating a driving school. However, it was found to have allegedly entered into a multi-level marketing investment scheme, promising individuals a profit of P12,000 after paying an “entry fee” of P1,200 and recruiting four other persons thereafter.

“The Commission will institute the appropriate administrative and criminal action against any person or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or the like for and in behalf of the subject corporation,” the SEC said.