SEC issues warning vs bogus investment firm

After being informed of a bogus organization based in Laguna soliciting investments from the public, the Securities and Exchange Commission (SEC) is advising the public not to pour in any funds in the company called Grand Alliance of Business Leaders Association, Inc. (GABAI).

In a public advisory, the corporate regulatory watchdog said it has received information that GABAI, a nonstock, non-profit based in Lucena City, Quezon has been asking investments from the public with a promise of profit of 20 percent to 40 percent interest per week.

As part of the scam, GABAI will sell shares to the public and will ask investors amount that ranges from a minimum of 350 to a maximum of 35,000 per day.

The SEC said that GABAI is not licensed to offer or sell securities under the section eight of the Securities Regulation Code (SRC).

“It is important to note that securi- ties under section 8 of the SRC must be registered with the SEC before being offered or sold to the general public,” SEC said.

Now, the agency is calling on any individual of entity who may have invested with GABAI to submit a sworn statement to the principal office address of the Securities and Exchange Commission or the office of the City Mayor of Luceno City.

To verify registration and licenses in engaging in investment-taking activities, the public is also advised to contact SEC Company Registration and Monitoring Department, Markets and Securities and Regulation Department, and Corporate Governance and Finance Department first.

In August, SEC has warned the public of a fake company selling shares through the social networking site called Facebook.

In its earlier memorandum, the commission said it received information that some individuals and business entities are engaged in the offering and selling of shares of WMAC Holdings Corp. in the Philippines through Facebook.

In an interview, SEC Commission Secretary Gerard Lukban said it is always important that the public would be aware of these scams as soon as possible to avoid further damage on the victim’s side.