SEC warns Zambo investors on fraudulent schemes

The Securities and Exchange Commission (SEC) has warned investors in Zamboanga against groups and individuals in the province soliciting money which the corporate regulator said may be fraudulent schemes.

According to the SEC, it has received reports through its Zamboanga Extension Office that persons or group of persons operating in Zamboanga City and based in Tungawan, Zamboanga Sibugay, are soliciting investments from the public allegedly as part of a government program where an initial investment of P15,000 will result in a payout worth P150,000 allegedly upon implementation or release of the fund by the central bank.

The SEC said investors should not be lured into putting their funds in such schemes.

“The public is advised to stop investing in this kind of investment scheme which may turn out to be a fraudulent investment scam and to take the necessary precautions in dealing with people or groups of persons inviting the public to invest their money in this scheme,” the SEC said in its advisory.

In addition to warning investors, the SEC also said it would penalize unscrupulous individuals.

“Accordingly, those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized,” the SEC said.

The SEC urged investors being victimized by such individuals to report such cases to the SEC’s Zamboanga Extension Office.

In recent years, the SEC has noticed a huge increase in the number of scams and fraudulent investments.

Pyramid scams and multilevel marketing schemes were among the common investments offered to the public, but in recent years unscrupulous individuals have become more sophisticated with what they offer, SEC officials said.

This was what happened to former Philippine Stock Exchange employee Jay Penaflor who dangled blue chip stock options – which turned out to be fake – to investors.