THE Securities and Exchange Commission (SEC) advised the public to "take the necessary precaution" in dealing with SGP Dragon Trading Corporation despite it being a registered corporation.

SEC said it received information that persons representing SGP Dragon Trading Corporation are offering online investments to the public.

On June 6, SGP Dragon was issued its Certificate of Incorporation with its primary purpose to "conduct and transact any and all lawful business related to the retail, distributing, import, export and trading of food supplement and cosmetics products, perfumes, colognes, hair care products, skin care products, oils, lotions, nail care products, facial care products, body and rejuvenation products, slimming products, beauty enhancement and maintenance products, hygienic and beauty care and other like products and services and to do all acts necessary and related to the exercise of corporate power, within or without the Philippines."

On July 15, the commission approved SGP Dragon's application for amendment of its secondary purpose, which is to "acquire by purchase, exchange, assignment, gift or otherwise, and to hold, own, and use for investment or otherwise, and to sell, assign, transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal in and with and otherwise operate, enjoy and dispose of real and personal properties of every kind and description and wherever situated, as and to the extent permitted by law, to invest in other companies and enter into joint venture agreements with any company, partnership, persons or government entities, domestic or foreign, for the advancement of its interest, including but not limited to, shares of capital stock, bonds, debentures, promissory notes, or other securities or obligations, created, negotiated or issued by any corporation, association, or domestic entities, and real estate, whether improved or unimproved, any interest or right therein, as well as buildings, tenements, warehouse, factories, edifice and structures and other improvements, and while the owner, holder or possessor thereof, to exercise any and all rights, powers and privileges or any other interest therein, except acting as dealer

and/or broker of securities and without engaging in investment taking activities from public investor."

"Provided that the corporation shall not solicit, accept or take investments/placements from the public neither shall it issue investment contracts," it added.

The SGP Dragon said the approval of its secondary purpose is the approval of its secondary license, but SEC said the issuance of a Certificate of Incorporation only grants the said entity juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the commission.

As such, although SGP Dragon is registered with the commission as a corporation, such registration does not authorize the company to offer, solicit, sell or distribute any investment/securities, SEC stated.

"The public is hereby advised to exercise caution before investing in these kinds of activities," it said.

Those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in the investment scheme being offered by these entities, including solicitations and recruitment through the internet, may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of P5 million or penalty of 21 years.

The SEC said those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public will be accordingly sanctioned or penalized.

The commission also encouraged the public, particularly those who have any information regarding the operation of SGP Dragon Trading Corporation, to call the Enforcement and Investor Protection Department via their telephone numbers: (02) 818-6047.