SEC: Get-rich-quick schemes on the rise amid COVID-19

The Securities and Exchange Commission (SEC) has warned that predatory getrich-quick schemes are on the rise amid the coronavirus disease 2019 or COVID-19 pandemic.

In its latest advisories, the SEC said three more groups are offering such schemes by enticing the public to invest even without the proper license.

The SEC issued the warning against Onlinebiz also known as OnlineBiz ECommerce, Accelerare Car Main Ph which also goes by the name Accelerare Ph and Accelerare Forex Trading, and Legit Payout or Legit Pay Out.

SEC records showed that the three entities OnlineBiz, Accelerare and Legit Pay Out are not registered either as corporations or partnerships and they do not have the necessary licenses.

The schemes of the three companies vary, but all are enticing the public to invest.

OnlineBiz engages in investment-taking activity by offering a business opportunity for a minimum of P19,000 in exchange for P5,000 to P50,000 weekly earnings plus insurance plan and free travel.

Accelerare taps loan investors for its business ventures in car trading and foreign exchange in exchange for interest income as well as bonuses and commissions.

One may invest a minimum of P1,000 in the car trading business and receive a 20 percent interest after 28 days or 150 percent after 90 days.

In the forex trading business, one may invest a minimum of P10,000 and earn 30 percent daily, weekly or monthly, depending on the trade, according to the SEC.

Legit Pay Out also entices the public to invest by promising a high return in a short period. Under the scheme, one would pay P1,000 to secure a slot and the amount invested for every slot would supposedly grow by 60 percent to P1,600 in two weeks.

“Such investment offers could turn out to be Ponzi schemes, where monies from new investors are used to pay earlier investors,” the SEC said.

It warned those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes that they may be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of up to 21 years or both under the Securities Regulation Code.

The Bayanihan to Heal as One Act, further penalizes those participating in cyber incidents that make use or take advantage of the COVID-19 pandemic to prey on the public through scams, phishing, fraudulent emails, or other similar acts with two-month imprisonment or a maximum fine of P1 million or both, the SEC also said.