THE Securities and Exchange Commission (SEC)-Northern Mindanao warned the public against investing with Yellowdot Transport Terminal Inc., which is engaged in fleet management business with a concept of "You Avail, We Manage, You Earn."
According to a recent advisory from SEC, Yellowdot Transport Terminal Inc. offers investment to the public with initial payment of P250,000 and monthly amortization of P30,000 to acquire a public utility vehicle known as "millennial jeepney."
The SEC added that part of the enticement of the said company's investment-taking activity is a promise of "unusually high profits or returns" in the amount of P55,000 to P85,000 per month, as confirmed by the Land Transportation Franchising and Regulatory Board.
The SEC said even though Yellowdot is registered with the commission as a corporation, it 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).
"The public is hereby advised to stop investing in the investment scheme being offered by the said entity," the SEC stated.
The agency said those who act as salesmen, brokers, dealers or agents of Yellowdot Transport Terminal Inc. in selling or convincing people to invest in the investment scheme being offered, such as soliciting investments or recruiting investors through the internet, will be 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, the SEC added.
The commission also encouraged those who have information regarding the operation of Yellowdot to call the Enforcement and Investor Protection Department at telephone numbers 818-6047.