SEC files complaint vs Eton Trading

MANILA, Philippines — The Securities and Exchange Commission (SEC) has filed a criminal complaint against Eton Phil Non-Specialized Wholesale Trading, which offers the public a monthly profit of up to 50 percent in what may possibly be another Ponzi scam.

Eton Trading offers 20 to 50 percent profit monthly for a minimum capital investment of P5,000 and a maximum of P100,000, the SEC said.

Earnings would allegedly come from the sale of wholesale products.

However, the SEC said Eton Trading is not registered with the SEC nor does it have a license to offer investments.

The SEC filed the criminal complaint against Eton Trading, supposedly for conducting “unauthorized investment solicitation activities.”

Based on its investigation, the SEC found Eton Trading soliciting investments from the public without the proper license from the SEC.

This is in violation of existing laws such as the Securities Regulation Code, the Financial Products and Services Consumer Protection Act (FCPA) and the Cybercrime Prevention Act of 2012.

The SRC prohibits the sale or distribution of securities without a registration from the SEC while the FCPA also prohibits investment fraud defined under the law as any form of deceptive solicitation of investments from the public which includes Ponzi schemes and such other schemes involving the promise or offer of profits or returns sourced from the investments or contribution made by investors themselves and the offering or selling of investment schemes to the public without a license or permit from the SEC.

Prior to the filing of the criminal case, the SEC received inquiries as early as September 2022 about the legality of Eton Trading investment solicitation activities.

The SEC then conducted an investigation on Eton Trading’s activities.

“There is sufficient proof that Eton Trading and its officers employed fraud and deceit upon the investing public to induce them to invest in this scheme,” the complaint read.

Furthermore, the SEC said that unsuspecting investors readily turned over their money to Eton Trading, lured by the false promise of quick financial gains on their investments.

The SEC posted an advisory warning the public against investing in Eton Trading on Feb 23, 2023. It then issued a cease and desist order against the company on June 15, 2023 directing it to stop soliciting investments from the public.