SEC warns vs scam using social media

The Securities and Exchange Commission (SEC), the corporate regulator, is warning the public against unscrupulous individuals enticing investments through social media platforms such as Facebook.

In an advisory, the SEC said it has received information that individuals or group of persons representing Onecash Trading are enticing the public to invest in it with a promise of a 200 percent interest in a span of eight weeks.

“Onecash Trading is inviting the public to sign up on their website, through a sponsored link, and deposit an amount of P1,000.00 as enrolment fee. Upon activation thereof, a member may opt to become a trader with a promise of receiving a 25 percent return of investment every Thursday for eight consecutive weeks without doing anything, or to be a builder wherein a member shall be receiving a P50.00 per direct and indirect invites up to the 10th level,” the SEC said in its advisory.

The SEC had warned Onecash Trading that it has to register with the SEC.

“Such investment schemes, whether with the use of money or virtual currencies such as bitcoin, etherium, ripple, dash, litecoin, monero, SIBcoin, mooncoin and many others, are considered as securities subject to the regulatory authority of this commission. The recruitment of investor members under the guise of sponsoring a person into the system is, likewise, considered a form of investment solicitation or a sale of securities,” the SEC said.

Furthermore, the SEC said those offering or selling securities to the public without a permit or license from the commission is a violation of Section 8.1 of the Securities Regulation Code (SRC).

The maximum fine is P5 million and imprisonment of 21 years or both, the SEC said.

Aside from the penalties stipulated in the SRC, the SEC would also report the names of all those involved to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and taxes can be correspondingly assessed.

“In view thereof, the public is hereby advised to exercise prudence before investing in these kinds of activities and to take the necessary precaution in dealing with Onecash Trading or its representatives,” the SEC said.