THE Securities and Exchange Commission (SEC)-Davao warned the public against investing to an unregistered and high-risk investment scheme, specifically those that promise very high returns like the Emgoldex Philippines (Emirates Gold Exchange), which has renamed itself to Global Intergold.
Lawyer Javey D. Francisco, SEC-Davao Director, said investing to a company without a license to do business in the country posed a high-risk situation to the public.
"There is a big risk because under the law, before a company to be allowed to sell is they have to secure first a license and be registered with SEC," he said.
The SEC said that Emgoldex Philippines is not a registered corporation or partnership in the country, thus it was unauthorized to solicit investments from the public in the Philippines.
But Global Intergold, formerly known as Emgoldex and which claims to be a Germany-based company, insisted that it is subject to secure a license in the Philippines since it is doing business online.
"Global Intergold is not an investment scheme or a financial institution, we are an Internet shop," read the Global Intergold support service official letter, adding that Global Intergold is registered in Germany where the company is based.
Global Intergold also said that its clients are merely buying gold and not investing.
"We understand that some companies are based overseas but since they are doing business here (Philippines), they have to secure a license to operate," said Francisco.
"Our concern here, with the proliferation of online trading, we cannot regulate it, so it is best for a company to get registered for better security for the investors and clients," he added.
SEC already published in its website a notice to the public to take necessary precautions in dealing with investments.
Meanwhile, Sarah Grace Andaya, a Global Intergold client and member of archangel team in Davao City, narrated her experience in the business that she "earned through rewards since January 2015."
"This company is indeed a blessing to me and my family because of the benefits and rewards na bininigay ng company in return sa mga clients that we (with her team) recommended to the company," she said.
She added that she already earned 100 grams of gold, which she sold back to the company for P180,000.
The SEC, in the early part of the year, already rang the bell against Emgoldex Philippines, saying it is not authorized to solicit investments from the public, as it did not secure prior registration and/or a license or permit to solicit investments from the commission as required under Section 8.1 of the Securities Regulation Code.
The commission has tagged the company as a pyramiding scheme that has through the years duped people of their hard-earned money. It promises very high returns, that is already held in suspicion by those who have been through a lot of pyramiding and Ponzi schemes.
As Emgoldex Philippines, it promised a P1,000 ($22.61) investment would earn profits ranging from P5,000 ($113.05) to P10,000 ($226.11) or a P35,000 ($791.40) would return P180,000 ($4,070.04) to P360,000 ($8,139.77).
Emgoldex claims it changed its name because it is no longer based in Dubai and has instead set up its headquarters in Geneva, Switzerland.
"Since Emgoldex is no longer with DMCC Dubai, the company changed their name as Global Intergold, an online gold store," Global Intergold stated.