THE Securities and Exchange Commission (SEC) may issue a cease and desist order against the Freedom Traders Club (FTC) which offers a virtual currency Ploutos Coins by luring investors in an alleged “Ponzi-scheme.”
SEC-Northern Mindanao director Renato Egypto said they are yet to conclude whether the FTC, founded by certain Mark Freeman, was an investment scam but he maintained that it did not apply for a SEC registration, thus, it does not hold the license to solicit investments from the public.
“We are not saying yet nga (that) it’s a scam. It could be a scam later on kay kahibalo mi nga kana nga activity requires license (because we know that such activity requires a license),” Egypto said.
“If they would still continue kay nagpadayon man pud among investigation and monitoring eventually mag issue na ang SEC og cease and desist order to stop it (we have an ongoing investigation so eventually we will issue a cease and desist order to stop it),” he added.
Egypto dares the FTC to show proof that they have applied for registration as they supposedly claimed.
He said the SEC has a stringent process before it registers an investment firm since it requires a capital of about P100 million.
Egypto said based on their information, there were investors from Cagayan de Oro City who have put money to FTC to as much as P10 million.
“Kung moingon sila nag-apply or giplastar na nila sila but aha man diha ipakita nila why not mo-come out sila to ease the public (if they claim that they have applied for a license, they have to show proof and come out to ease the public,” Egypto said.
The SEC-Northern Mindanao director said they have been receiving reports that there were victims who failed to get their return of investment which was promised by the FTC.
He said aside from Freeman, agents and recruiters who convince people to join are also criminally liable according to a Supreme Court ruling.
“Mao man gyud ning (this is how) Ponzi type sa scam, you accept money from the public and that same money mao rana ihatag sa nakauna wala gyud tinuod nga negosyo mao rana gatuyok-tuyok diha (the same money will be given to prior investors without actual business activity),” Egypto said.
Egypto is urging victims to formally file cases against FTC to either with the SEC or to a lower court for estafa.
“Naay department namo sa head office nga mofile sa DOJ for violations like the Securities Regulation Code or sa PNP mosumbong sila kay large scale estafa mani siya (we have a department in our head office tasked to file cases at the DOJ for violations of Securities Regulation Code and the likes, or they can report to the PNP since its considered a large scale estafa),” he added.
Egypto said he would suggest to the city council's committee on trade and commerce to invite the central bank in the next round of committee meeting.