An SEC official, who requested not to be named, said the agency received a lot of queries from various individuals with respect to the authority of some corporations to solicit investments from the public.
These corporations are: Alabang Holdings Inc., Athon, Management and Trading Corp., Bicutan Holdings, Binondo Holdings, Calamba Holdings, Cavite Holdings, Cielo Azul Holdings Corp., Diamond Star Management & Trading Corp., Global Progress Management and Trading Corp., Great Allianz Management & Trading Corp. Growth Management and Trading Corp., Highland Management & Trading Corp., Jamcor Holdings Corp., Jetcor Equity Co. Ltd., J.V. Tibayan Group Corp., Las Pinas Global Management and Trading Corp., Las Pinas Global Management & Trading Corp., Las Pinas Holdings, Lucena Holdings, Matcor Holdings Co. Ltd., Mindoro Holdings, Muntinlupa International Management & Trading Corp., Musad Management & Trading Corp., Pamplona Holdings, Pangasinan Holdings, Pangasinan Star Management & Trading Corp., Pangasinan Holdings, Pamplona Holdings, Pangasinan Star Management & Trading Corp., San Pablo Holdings, Sta. Rosa Holdings, Sta. Rosa Management & Trading Corp., Star Allianz Management & Trading Corp., Starboard Holdings, SStarboard Management & Trading Corp., Starfund Management & Trading Corp., Starwealth Management & Trading Corp., Sto. Tomas Holdings, Subic Bay Holdings, Subic Bay Management & Trading Corp., Tagaytay Holdings, Tagaytay Management & Trading Corp., TG Asset Management Corp., TMGC Holdings, TMGC International Holdings Co. Ltd. , TMG International Trading Corp., TMGI Holdings, TG Investment Co. Inc., Tibayan Management Group International Holdings Co. Ltd., Tibayan Group Investment Co. Inc., United Alpa Management & Trading Corp., Visayas Holdings, Vismin International Management & Trading Corp., Vismin Management & Trading Corp., Wallstreet International Holdings Co. Ltd., Westar Holdings and Westar Royalty Management & Trading Corp.
These entities, according to the SEC, are not registered issuers of securities under the Securities Regulation Code and are, therefore, not authorized by the commission to sell securities to the public or issue investment certificates/contracts.
The SEC, along with other government agencies including the Department of Trade and Industry, is stepping up the campaign against illegal investment solicitation activities.
In view of the difficult economic conditions, thousands of investors, including overseas Filipino workers and retirees, have been lured into joining various investment schemes that promise instant and hefty gains in just a short period of time. More often than not, these get-rich-quick schemes turn out to be scams.
The 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 SEC said the public should also be wary of unexpected telephone calls, letters or even personal visits from people who promise hefty investment returns.
Prospective investors are encouraged to ask for a prospectus, financial statement or other similar document before they even consider investing.
As the country’s commodities and futures exchange remains closed, the SEC has also warned the public against engaging in foreign currency trading unless investors fully understand the mechanics or dangers of currency trading.
The SEC has likewise asked the public to avoid seminars that promise high returns with no explanation of risk, and that promise access to secret or exclusive techniques for building wealth.
In particular, 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.
In the classic pyramid scheme, participants make money mostly through recruiting new members into the group. Usually, these involve selling some product or service. The underlying goods and services, which vary from vitamins to shoes, serve only to make the schemes legitimate.
The SEC said all pyramid schemes collapse when they run out of people to get money from.
The commission, however, pointed out that not all multi-level marketing schemes are illegal as long as the earnings are related to an individual’s performance as a salesperson of the products or services being marketed.
Nevertheless, investors are still encouraged to check with the DTI before getting involved in any multi-level marketing scheme.
The SEC has also warned the public against persons or companies that represent themselves as being authorized by the SEC to accept investments or manage other people’s money. These people present their company’s certificate of incorporation just to show that they are legitimate securities market professionals or what they do is legal, the SEC said.