THE Securities and Exchange Commission (SEC) has warned the public against two unregistered entities soliciting investments despite having no licenses to do so.
In separate advisories, the regulator identified the two investment-taking entities as B2B Trading Center OPC and LeBronify/Authority Circle.
“The Securities and Exchange Commission has noticed that B2B Trading Center OPC, an entity purportedly engaged in direct selling and social e-commerce, and individuals or group of persons related thereto are soliciting investments through its Go Diamond.On-line Program,” the regulator said.
Would-be investors are required to choose from several packages for investments from P5,000 to P150,000. Investors may also earn from referrals and recruitment.
“The public is made aware that an “investment contract,” a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is present in the pyramiding investment scheme of B&B Trading Center OPC through its Go Diamond.On-line Program,” the SEC said “Pyramiding, being fraudulent and unsustainable is not a registrable security.”
It said that while B&B Trading Center is registered with the SEC, it is not allowed to solicit investments as it does not have a license to do so.
Meanwhile, LeBronify/Authority Circle is “engaged in investment taking activities under the guise of freelancing consultancy,” the SEC said.
“As promoted by a certain “Niel Reichl” through his Facebook Account, Instagram account, Spotify Podcast and TikTok Videos, the would-be investors may invest either P500,000, 750,000 or 2,000,000 with the first and second option having a lock-in period of 12 months with a minimum 100% interest after the maturity of the investment,” the regulator added.
LeBronify/Authority Circle is not registered with the SEC as a corporation and is not allowed to solicit or take investments or issue securities, it said.
The scheme used by the entity “has the characteristics of a “Ponzi Scheme” where money from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the SEC said. — AHH