THE Securities and Exchange Commission (SEC) issued an advisory to the public, cautioning them from investing in 22 companies they deemed to be suspicious.
SEC named the following firms: Mga Business Enterprises, Coophub Multimedia Services, Jogle Innovative Marketing, Global Dream Zion, Grappler, Sherpan, BCT Marketing/BCT Motorcycle and Car Trading, RTM/RTM Pharmacy and General Merchandise, Diamond Marketing, Fusion Marketing, FMarket, Cirfund, Vibean, OnePro, BCC/BCC Cosmetics Trading, VUCC, Bitrain, TCoin, Crowd Royals, Ada Farm Agri Ventures, and Nermie Marketing/Nermie Health and Beauty Products Trading.
SEC issued the warning after receiving reports that investors are increasingly turning to social media including Facebook, YouTube, Twitter, LinkedIn and other online networking for information about investing.
The agency also said that schemes employed by the firms offer returns on investments ranging from 10 percent to 400 percent per month.
“The public is hereby informed that such investment schemes, whether with the use of money or cryptocurrencies, are considered as securities subject to the regulatory authority of this Commission,” SEC said in a statement.
“The recruitment of investor-members under the guise of sponsoring a person into the system is likewise considered a form of investment solicitation or a sale of securities,” SEC added.
The agency also underscored that offering or sale of securities to the public without a permit or license from SEC is a violation of Section 8.1 of the Securities Regulation Code.
Last May, investment firms Rigen Marketing and Jogle Innovative Marketing were given a cease and desist order after failing to secure business permits from the Davao City Mayor’s Office.