SEC warns against direct marketing firm

MANILA, Philippines - The Securities and Exchange Commission has warned the public against investing in Direct Marketing Group International Corp., also known as DMG International.

 In its latest advisory, the SEC said DMG International entices people to invest at least P1,000 with a promise of a P200 or 20 percent return on the 11th day.

In addition, for every P1,000 invested, three kilograms of rice would be given to investors every 10 days.

On an option-only basis, the investors may engage in direct selling of consumer products but this option is discouraged in favor of the first option.

 The entity operates in Caloocan City and also claims to be operating in Kalinga, Marilao and other parts of the country.

According to the SEC, the company operates a typical Ponzi scheme it has no viable business operation and the earlier investors, who were promised high returns are paid from funds collected from new investors.

“As such the investment cannot be registered by the SEC,” the SEC said.

 The SEC noted that none of DMG’s officers, uplines, recruiters, sellers or agents has been issued a license to act as certified solicitor, investment adviser, broker and dealer in securities as required by law.

 “The public is hereby advised to stop investing in the said entity and to exercise caution in dealing with its officers and promoters,” the SEC said.

The SEC has been noticing a rise in the number of investment scams in the country.

 To address the problem, the corporate regulator is being extra vigilant against fraudulent firms by looking into incorporators previously involved in investment frauds.

Among these companies include Klikmart Shopping Club Corp. or Klikmart Rewards, Grand Time Automobile, Mutual Universe Corp. and Wealth Builder Advertising.

 In a separate advisory, the SEC said Klikmart is operating as a marketing plan which promises investors a 33 percent interest after a minimum period of 21 days to a maximum period of one month.

 Grandtime, meanwhile, is also operating as a marketing plan with members paying an initial entry fee of P1,500.

Similarly, Mutual Universe Corp. has no secondary license to solicit investments from the public. Under its scheme, investors shall infuse an initial capital of P7,499 with a guaranteed income of P40,000 to P120,000.

Wealth Builder, on the other hand, offers investment opportunities in the form of shares priced at P898.00 per share and one can earn up to 150 percent per share or a total income of P1,347 each share within a period of 30 to 45 days.

These companies, the SEC said, are not authorized to solicit investments.