SEC warns public on pyramid scams

Cosmetic firm One Lightning Corporation, which is now allegedly victimizing the public with its fake investment schemes, has staged what could be the next big pyramid scam in the country, which prompted the Securities and Exchange Commission (SEC) to reiterate its warning to the public against the firm.

In an earlier advisory, the country’s corporate watchdog has warned the public concerning the investment taking activities being undertaken by One Lightning Corporation and its related affiliates.

As part of its modus operandi, One Lightning invites people to invest in its cosmetics and healthcare products by promising huge returns on their investment through what it claims is ‘a revolutionary compensation plan’, which promises the investors a share of 70 percent of the firm’s overall profits.

Apparently, this is not where the firm’s scam ends.

Merely a week ago, SEC also reiterated its warning against fake investment firm EMGOLDEX Philippines, which continues to victimize the public by issuing advisories in different parts of the country, claiming it is a legit company registered with the Commission.

EMGOLDEX Philippines particularly set up an investment scheme called ‘ Pinoy Style Patak Patak’ for a promise of huge profit or high returns where an investment of R1,000 will earn profits ranging from R5,000 to R10,000 or a placement of R35,000 to R360 thousand.

“To set the record straight, this commission reiterates its official advisory, that per existing records, EMGOLDEX Philippines is not a registered corporation or partnership in the Philippines. EMGOLDEX Philippines is not also licensed or authorized to solicit investments from the public of the Philippines,”

Based on further investigation conducted by the SEC, One Lightning is also offering different product packages for which it undertakes to give investors referral rewards for sponsoring new investors, a maturity reward for each matured package of their referrals, uni-level rewards, or bonuses for up to the third level of referrals upon maturity of their shares and a share in the profits.

A source from the SEC said this seems more of a pyramid or networking scam than just an ordinary investment scam.

Pyramid scam is a false investment scheme based on a hierarchical setup.