SEC warns public against dealing with unlisted firm

Bent on stopping the proliferation of fraudulent investment solicitation activities, the Securities and Exchange Commission has warned the public against dealing with South East Economic Environment Development Inc.

In a notice issued to the public, the SEC said South East is not registered with the corporate regulatory watchdog and therefore, has no legal personality.

The advisory was issued in response to numerous inquiries received from the public as to whether the company is registered with the SEC.

South East was reportedly soliciting investments from the public with the promise of high profits in just a short period of time.

At the same time, the SEC advised investors who failed to claim their checks during the scheduled distributions or who otherwise still have claims against Glasgow Credit & Collection Services Inc. that the remainder of the funds is under the custody of the Anti-Money Laundering Council.

All other claims, the SEC said, shall be made in accordance with the procedure prescribed by law, which is through an ordinary collection case in court.

The present economic crisis has made middle to low income consumers vulnerable to the tempting promises that a number of companies are using to peddle their get-rich-quick schemes.

The SEC is pushing for the immediate passage of a law that would ban pyramid or get-rich-quick schemes which have victimized thousands of unsuspecting investors due to the promise of high-yielding investment returns.

The SEC has blamed the lack of laws against pyramiding for the proliferation of deceptive and unfair sales acts and practices of chain distribution operations.

The commission said although the SEC can file criminal cases against perpetrators of investment scams, the agency is helpless in preventing pyramiding operations.

The economic slowdown makes middle to low income consumers vulnerable to the promise of getting rich quickly and easily, particularly in rural areas.

A Scams Hotline was established by the SEC to enable the public to report spurious activities. This has helped the Commission track down and stop the operations of pseudo-investment firms. The hotline numbers are 7258260 and 7253418.

SEC said the public should learn to invest wisely since the commission does not have the capacity to oversee and regulate the entire investing public.

The commission said the public should be wary of schemes that are based primarily on paying commissions for recruiting new participants into the program, that promise sky-high returns in a short period of time, and that offer home investment or employment opportunities.)