THE Securities and Exchange Commission (SEC) recently issued an advisory against an entity called Togachat Academy Philippines Inc.
According to SEC, despite registered with the Commission as a corporation, Togachat Academy Philippines Inc. is "not authorized" to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC).
Based on the information gathered by SEC, the scheme of Togachat Academy Philippines Inc. involves inviting people to pay the minimum amount of P5,000 in exchange for a promise of high monetary rewards that can only be achieved through recruitment of more people to participate in the scheme.
To be a member, an individual should avail of a package which contains Toga Credit that will be converted into Toga Points subject to direct referral or pairing bonus.
The Toga Points earned will be deducted from your Toga Credit which can be used to purchase a stock of Toga Limited or can be cashed out immediately.
"The public is hereby advised to stop investing in the investment scheme being offered by the said entity," SEC stated.
The Commission added that those who act as salesmen, brokers, dealers or agents of Togachat Academy Philippines Inc. in selling or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of P5 million or imprisonment of 21 years or both pursuant to Section 73 of the SRC.
"The names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes be correspondingly assessed," SEC stated.
The Commission also encouraged those who have any information regarding the operation of Togachat Academy Philippines Inc. to call the Enforcement and Investor Protection Department at telephone number 818-6047.