SEC orders stop to PawisngPinoy investment scam

The Securities and Exchange Commission (SEC) has ordered PawisngPinoy Online Investment to stop its illegal solicitation of investments from the public through a non-existent product distribution, real estate, and jewelry business.

In an order, the Commission En Banc directed PawisngPinoy to immediately cease and desist from engaging in the unlawful or unauthorized solicitation, offer or sale of securities without the necessary license and approval from the SEC.

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The SEC also ordered PawisngPinoy, its owners, operators, representatives, agents, and promoters to cease their internet presence.

They were likewise prohibited from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of the investors.

The Commission issued the cease and desist order after its Enforcement and Investor Protection Department (EIPD) concluded its investation of PawisngPinoy.

The SEC-EIPD found the firm to have been soliciting from the public investments ranging from P2,000 to P10,000, in exchange for a guaranteed passive income of P4,500 to P20,500 within five to six days. The group has also been promising investors P500 to P2,500 in bonuses.

The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC.

The Securities Regulation Code (SRC) 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.

“[T]his Commission finds, and so holds, that PawisngPinoy is unlawfully engaged in the sale and/or offer of unregistered securities in the form of investment contract, because it has no license to carry out the same,” the Commission En Banc held.

The investments received from the public will allegedly be used for PawisngPinoy’s rice trading business, construction and medical supplies distribution, and real estate operations, which the EIPD found to be non-existent.

“The EIPD was able to show that the investment scheme of PawisngPinoy involves the pooling of the money invested by its investors in rice trading, construction and medical supplies trading, real estate development, and buying and selling of gold jewelries which are actually, which was utilized to satisfy and pay the guaranteed returns of its existing investors,” the order read.

It added that, “This is the common enterprise that is being sustained by the investments received by PawisngPinoy, although the same is masked by a product distribution, real estate, and jewelry business which, in reality, does not exist.”

The EIPD also found PawisngPinoy to have been using a fake Certificate of Filing of Amendment of Bylaws, to make it appear as if it has been authorized by the SEC to solicit investments from the public.

PawisngPinoy is not registered with the Commission as a corporation or partnership. Accordingly, it cannot secure a secondary license needed for the issuance of securities for public offering, pursuant to the SRC.

The Commission has warned the public against dealing with or investing in PawisngPinoy as early as January 11 through an advisory posted on the SEC website.

“[T]his Commission holds that the act of PawisngPinoy in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the cease and desist order read.

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Credit belongs to : www.mb.com.ph

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