SEC warns public from investing in South Korea-based BrainMax

THE Securities and Exchange Commission (SEC) has issued an advisory warning the public against a South Korea-based company allegedly engaged in fraudulent investment activities in the Philippines.

In a notice posted on its Web site, the corporate watchdog said BrainMax Holdings and Trading, Inc. has yet to obtain a secondary license from the SEC so they can solicit investments from the public under Section 8 of the Securities Regulation Code (SRC).

Likewise, the SEC pointed out that the company’s articles of incorporation do not include investment- taking activities as its purpose.

BrainMax promises investors a return of 40% in four months for a minimum investment of P25,000 which is allegedly reinvested in the stock market, the SEC said, citing reports and inquiries from the public.

Payment of return of investment is done through the issuance of postdated checks.

Salesmen, brokers, dealers or agents of BrainMax who sell or convince people to participate in the investment scheme may be fined as much as P5 million or be imprisoned for a maximum of 21 years pursuant to Section 73 of the SRC.

Similarly, those who invite or recruit other people to join in this venture or offer investment contracts to the public may be held criminally liable or face sanctions.

“The public is hereby advised to exercise self- restraint from investing their money into such high-yield, high-risk investment scheme and to take the necessary precaution in dealing with individuals representing the abovenamed entity,” the SEC said.

The company, formerly known as Cambas Trading and Marketing, Inc., was engaged in importing and distributing gadgets and heavy equipment from South Korea to the Philippines. BrainMax Korea merged with the firm in 2015 then diversified its operations to include investment and travel services, according to its Web site.

BrainMax also has international offices in Singapore, China, and Cambodia. —