MANILA, Philippines - The Securities and Exchange Commission (SEC) has warned the public against investing in a new company that tempts investors with huge returns.
In its latest advisory, the SEC alerted the public on the investment solicitations of One Lightning Corp. and its related affiliates.
“One Lightning has not been issued by this commission a secondary license to publicly offer or sell securities and to solicit investments from the public,” the SEC pointed out.
As part of its modus operandi, One Lightning invites people to invest in its cosmetics and healthcare products by promising huge returns on their investment, the SEC said.
The SEC said One Lightning claims through its so-called revolutionary compensation plan that it would share 70 percent of the company’s profits to investors and distributors.
Based on its investigations, the SEC said it found out that One Lightning undertakes to give referral awards for sponsoring new investors and maturity awards when those investors in turn are able to recruit new investors or when their accounts mature.
The company also gives bonuses at every level for three levels of referrals made, the SEC added.
“Those who participate in this investment taking activity of One Lightning Corp. run the risk of being prosecuted for criminal violation of the Securities Regulation Code,” the SEC said.
The SEC has intensified its efforts to warn the public against fraudulent business practices following a large-scale investment scam three years ago.
In 2012, Pagadian-based Aman Futures Group Philippines Inc. was exposed as a P12-billion investment scam, defrauding thousands of investors including politicians, professionals, businessmen and employees.