SEC airs warning on double-your-money scheme

FINANCIAL EDUCATION IS THE KEY TO AVOID “PYRAMIDING SCAM”

Unscrupulous individuals, groups and companies (which may or may not be registered with the SEC) continue to prey on thousands of hapless Filipinos. They will tempt you into putting your hard earned money in investments and businesses that supposedly pays big profits in a short period of time and without much effort.

Kadalasan drawing o imagined lang ang products or services ng mga manlolokong ito. Kung meron mang product, sobrang mahal. To lure you into their trap they will sometimes use the teachings of well-known authors and personalities to convince you that their system is legitimate and that it really works. They will present to you amazing facts & figures and convincing testimonies that result in your good judgment taking a backseat at hindi ka na makapaghintay na ibigay ang iyong pera sa kanila.

Protect your hard-earned money. Busisiing mabuti ang anumang investment o business opportunity na ipipresenta sa ‘yo. Huwag basta-basta maniwala. Bago magdesisyon pag-isipang mabuti at mag-isip ng matagal. Magtanong sa mga tao o ahensya ng gobyerno na may alam sa ganitong kalakaran. Do not allow yourself to be rushed into making a decision. Yan ang gustong-gusto ng mga scammers, yung hindi ka na nag-iisip at “oo” kaagad. And when people warn you about a potential scam heed the warning instead of shutting them out. Don’t let promises of riches and greed cloud your judgment.



SEC airs warning on double-your-money scheme
The Philippine Star, December 14, 2009

MANILA, Philippines - The Securities and Exchange Commission (SEC) has warned the public against dealing with Goodlife Fashion & Accessories Enterprise Corp. which was found to have been soliciting investments from the public without its approval.

In a notice to the public, the SEC said it received information that Goodlife has been promising a double-your-money scheme to attract more buyers.

“The public is advised that Goodlife is not a registered issuer of securities and is therefore not licensed to offer or issue securities to the public in accordance with Sections 8 and 12 of the Securities Regulation Code,” the SEC said.

“The public is further advised to take the necessary precautions before entering into transactions with the corporation,” the SEC added.

The scheme purportedly offers investments in the form of distributorship agreements to the public, enticing prospective investors to earn profits ranging from 15 percent to 30 percent interest per month.

“Those who enter into the offered transactions are also invited to open branches to which are consigned the consumer goods of the said corporation to earn additional profits,” the SEC said.

Sec. 8 of the SRC prohibits the sale of securities without prior registration with the Commission.

This kind of solicitation activity is similar to a Ponzi scheme where investors are lured with promises of high returns, and for awhile they may get those returns.

But what they don’t know is that their money is not really being invested in anything at all. The “interest” they receive is money being paid in by later investors.

As long as more investors sign on, which they will because of word-of-mouth advertising about the “great returns,” everything seems fine. But since no real investments are being made, it can’t last long. Because the promoter is only collecting money from new participants to pay off earlier investors, the scheme will inevitably fail.

After a time, the con artists pocket investors’ money and disappear.

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