DAVAO CITY — The Securities and Exchange Commission-Davao Extension Office (SEC-DEO) has reminded the public to be mindful in investing their hard-earned resources following reports from Davao City residents that there are new illegal double-your-money (DYM) schemes coming out in the city.
Based on reports reaching some radio stations, a new scheme is coming out in the southern part of Davao City promising a double-your-money scheme where someone who invests P1,000 will get P2,000 after 30 days.
An investment scheme is illegal if an individual or entity is taking in investments from the public without a secondary license from the Commission.
Aside from the absence of a secondary license, the public must also employ the use of Howey Test. Under this, there is an investment contract when there is an investment of money in a common enterprise with expectation of profits primarily from the efforts of others or from recruits.
“One telling reason for the public to shy away from this investment is that, based on the reports, this new DYM scheme is strictly implementing a no refund policy,” the office added.
Section 8 of Republic Act No. 8799, or The Securities Regulation Code, provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.
A maximum fine of P5 million or imprisonment of 21 years or both await those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes, for violation of Republic Act No. 8799, or The Securities Regulation Code Securities Regulation Code, among others.
The Commission also encourages the public to report unauthorized investment solicitation activities to its Enforcement and Investor Protection Department through email at firstname.lastname@example.org. – END-