SEC warns against investing in 1Legacy, Wahana

THE SECURITIES and Exchange Commission (SEC) has warned the public against investing in entities calling themselves 1Legacy and Wahana Credit and Loan Corp./Wahana Multipurpose Bank ( Wahana), saying that neither are registered with the commission.

In separate advisories posted on its Web site, the SEC discouraged the public to invest in Wahana, which supposedly acts as a lending company for casino players. The company was found to be soliciting investments from the public in exchange for as much as a 12% return per week, and 48% monthly interest.

The country’s corporate regulator said Wahana did not secure certificates of authority to operate as a lending and/or financing company, making its acts illegal.

“In view thereof, the public is hereby advised to exercise self- restraint and caution or more prudently to stop investing their money into such investment activity and to take the necessary precautions in dealing with the above-named entity and/or its representatives,” the commission said.

On the other hand, the SEC also warned the public against 1Legacy, owned by the operators of another firm the commission has previously warned the public against, Secrets 2 Success (S2S).

Reports gathered by the SEC revealed that S2S solicited investments of P250 from the public in exchange for access to an online academy for financial education. S2S reportedly tells investors they can earn up to P892,800 in commissions per month.

The commission has already released an advisory last January against S2S’s illegal investment making activities.

Similar to Wahana, 1Legacy has not been registered with the SEC either as a corporation or partnership.

“Thus, being not registered with this Commission as a corporation nor as a partnership, it is with more reason that they are not allowed to offer, solicit, sell, or distribute any investment/ securities from the public as the same requires a secondary license for such activity,” the SEC said.

The commission noted those found to be connected with 1Legacy, acting as salesmen, brokers dealers, or agents, may be fined up to P5 million, alongside a prison sentence of up to 21 years. People proven to be inviting or recruiting other people into the scheme may also be held liable or sanctioned by the SEC. —