SEC halts Scentkoworld, Brendahl investment scheme

THE Commission Securities ( SEC) and stopped Exchange the operations of Scentko World Corp. ( Scentkoworld) and its supposed parent, Brendahl Cruz Holdings Inc. ( Brendahl), for facilitating the unauthorized solicitation of investments.

In a statement on Wednesday, the SEC said it had issued a ceaseanddesist order on September - tives, following a warning issued earlier in the month.

Under the “Buy & Earn Program,” Scentkoworld encouraged the public to buy perfume and beauty products with a promise of “cash sales rewards” equivalent to 400 percent of the purchase.

“For instance, a member is promised a return of P20,000 for simply buying a package worth P5,000,” SEC said.

These firms were ordered to halt business transactions on the “funds in their depository banks, and from transferring, disposing or conveying in any other manner all related assets for the benefit of investors.”

In addition, the SEC said that false claims — such as Brendahl securing secondary license to sell securities and buying or establishing its own rural bank — were made. As such, these firms were also ordered to take down their websites.

The government regulator noted that Brendahl never obtained any secondary license, based on certifications issued by its Corporate Governance and Finance Department, and Markets and Securities Regulation Department.

Section 8 of Republic Act 8799 or the “Securities Regulation Code” prohibits any entity from offering or selling investment contracts without an SEC- approved registration statement.

In April, SEC revoked the registration of Kapa- Community Ministry International after finding out that it solicited investments from the public without a secondary license.

In exchange for 30- percent monthly “blessing” or “love gift” for life, Kapa deceived the public to “donate” P10,000 “without having to do anything other than shell out money and wait for the promised payout,” SEC explained.

It also employed a Ponzi scheme, SEC added, which was a violation under Section 26 of RA 8799. Such scheme refers to attracting investors with “highly impossible returns” to be paid out from contributions of other investors.