SEC warns public vs investing in Bioglow laundry shops

THE Securities and Exchange Commission (SEC) has advised the public against investing in Bioglow Laundry Shop (Bioglow), noting that it is not registered with the commission nor authorized to solicit investments.

The commission found that Bioglow has been inviting people to invest in the laundry shop’s branches at P2,500 per one percent share in the main branch, and P2,000 per one percent share in a satellite branch. An investor could own an entire branch for P250,000 and P200,000 for main and satellite branches, respectively.

In exchange for the investment, Bioglow will manage the business, including the procurement of permits, employment and training of staff, as well as actual business operations. The investor can then earn income proportionate to the revenues generated by the branch.

Bioglow will deduct 25% from the branch’s income as processing fee and for other expenses incurred during the period, with the remaining income to be divided among the investors.

The company also guaranteed investors that the branch will generate P10,000 in net sales monthly, as per its Monthly Sales Protection System.

The SEC said that Bioglow is not registered as a corporation or partnership with the commission, and is likewise not authorized to offer investments to people since it does not have a secondary license to sell securities or investment products.

“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Bioglow Laundry Shop or its representatives,” the commission said.

The SEC added that those who act as salesmen, brokers, dealers, or agents of Bioglow who sell or convince people to invest in the group may be prosecuted as per the Securities Regulation Code (SRC). Penalties could reach as high as P5 million or up to 21 years of imprisonment, in accordance with Section 73 of the SRC.

The commission has continuously been issuing advisories against several investment scams to protect investors. It previously warned the public against entities like KAPA Community Ministry International, Inc., Bibli Online Store, and Nutriwealth Multi-Purpose Cooperative, among others. —