SEC-Davao warns public vs JC Pro Global Trading’s illegal investment scheme

THE SECURITIES and Exchange Commission’s (SEC) Davao office on Tuesday issued a warning against putting money in JC Pro Global Trading’s “compensation plan,” which is considered an illegal investment scheme. “This investment-taking scheme cannot be sustained and inevitably will result in the collapse of the business,” SEC-Davao said in a statement, noting that the company’s operations is a “Ponzi scheme.” SEC-Davao said JC Pro Global Trading does not have a license to solicit investments and warned that the company as well as its agents face penalties of up to P5 million or 21 years in prison based on the Securities Regulation Code and the Revised Corporation Code, among other regulations. JC Pro Global Trading, according to SEC-Davao’s probe, uses Facebook to attract investors into a “system… designed to take care of everything which include, trading, buying and selling of cryptocurrency which provides daily income and a guaranteed profit of at least 200% in 20 days or double-your-money in 20 days which provides a norisk investment because profits are assured.” BusinessWorld sought comment from the Facebook page of JC Pro Global Trading but no response was sent as of press time. Based on its online posts, a basic “compensation plan” requires an investment of at least P500 up to P100,000. Investors are promised a profit as well as commission for bringing in new investors. SEC said such arrangement “is an investment contract because it involves the offering and sale of securities to the public where their investors need not exert any effort other than to invest or place money in the scheme in order to earn profit.” —