IN ITS bid to protect the public from falling prey in investment and financial scams, the Securities and Exchange Commission (SEC)-Davao strengthened its campaign against "pyramiding" as investment schemes continue to flourish in the market.
Lawyer Javey D. Francisco, SEC-Davao director, told Sun.Star in an interview that for next year, they will be strengthening its campaign through road show presentations, initially in key areas, radio ads and programs, monthly seminars and regular coordination with the local government units (LGUs) by sending letters, notices, and flyers, among others, all in the efforts to protect the public from financial fraud.
“We continue this information campaign most especially to country sides and rural areas within our area of jurisdiction because we have lesser presence there,” he said.
SEC-Davao covers the whole Davao region and Soccsksargen, with extension to some areas in the Autonomous Region in Muslim Mindanao (Armm).
“When there is an offer to you that sounds or appears to be too good to be true, offering a return in investments that is double or more, with products as front, yung iba nga walang products all you have to do is recruit or invite others to invest too, most probably that is pyramiding and considered to be a high-risk investment scheme,” Francisco said.
“Actually, if you really going to look deeper into their scheme, you’ll find that you earn from your recruitments, the people you recruit, yung ininvest nila were used to pay the one who invested earlier,” he added.
He emphasized that one should come out and report and check with Sec offices if the company is registered. Moreover he explained that there are companies registered with Sec but is not licensed to sell products.
“It is also important to check if the company and agents selling the products are licensed and authorized,” Francisco said, adding that studying and understanding the product thoroughly before investing and keeping all documents of transactions are important.
Davao-based sales and marketing company which started last 2008, Jacama, assured the public that the business is registered and licensed to operate in the city.
“We are not an investment company, formerly we are a networking company but just this year we converted the nature of business into a direct selling and marketing because the owner wanted clients to benefit even without recruiting,” said Jobert Sayasat, marketing consultant of Jacama and a member green archers group, the pioneer group in the company.
Jacama is now offering to clients its cash back guarantee sales program thru cash sales rebates wherein one will pour some amount (Package one = P1,800), get a certain package may it be groceries, appliance, or gift certificate worth P400 and every 15-days will receive an amount (Package one = P450 per 15 days) for three months. From the P1,800 the client poured in the program for the package one, after three months it will turn into some 150 percent increase to P2,700.
“One will not need to recruit to benefit from the program, if he does then he gets a bonus but it is not really that necessary,” Sayasat added.
He said Jacama is not registered to Sec because the company is not a corporation, association or cooperative but a single proprietorship.
“But we are registered under Department of Trade and Industry, Bureau of Internal Revenue (BIR), and other local government certifying bodies,” he said.
Jacama has a business registration number 40899 in Davao City and DTI permit certificate number 03776567.
SEC-Davao, with its bid to protect the public from high-risk investment schemes, is currently conducting investigatory works to some firms reported by reliable sources.
“We want to encourage people to inform us so that we will be able to do necessary measures. We should not wait for the scam to break through, to grow up on our faces, to prevent that it will come to an uncontrollable situation,” Francisco said.