THE Securities and Exchange Commission (SEC) warned the public against Lets Philippines Humanitarian Foundation, which reportedly engages in lending operations and solicits investments.
In a recent advisory, the SEC said that Lets Philippines, which offers interest-free loans to borrowers with no collateral required, is not registered with the commission as a corporation or a partnership. Neither is it authorized to solicit investments from the public nor to offer loans.
“The public is advised to stop investing in this kind of investment activity and to take the necessary precautions in dealing with (Lets Philippines) or its representatives,” the corporate regulator said Friday.
Lets Philippines claims to be a partner of US-based media, mobile, and wearable technology company World Global Network (WGN). The company’s activities allegedly include promising loans of up to P30,000, with no interest nor collateral requirements, which supposedly qualify the borrower to be a so-called humanitarian member.
In return, the member, according to SEC, would be given a 30 percent share in the profits of WGN, without any up-front investment.
Members are then enticed to invest P500 with a promise of P20 in daily profits to be collected every 90 days. They may also opt not to collect their profits in exchange for a loan amounting to P50,000, without interest, at the end of 120 days.
According to SEC, Lets Philippines’ sales force, brokers, dealers or agents may be held criminally liable under Section 28 of the Securities Regulation Code and face a maximum of 21 years in prison, if proven guilty.
For this year, SEC has already issued 13 advisories against alleged scam companies.
SEC has also warned against an unidentified investment scam in Marinduque that solicits P150,000 to P300,000 in investments, as well as fradaulent online lending offers circulating on social media sites like Facebook and Twitter.
Those who have information about the operations of these companies are advised to report the matter to SEC. (JOG)