AS INVESTMENT scams and pyramiding schemes appeared to have continued to flourish in Davao City, the Securities and Exchange Commission-Davao Extension Office (SEC-DAO) is gearing up for a series of information campaigns in a bid to educate the public on the do's and don'ts in investing.
The commission is eyeing to kick start the roadshow campaign in Davao City in March as the city is likely becoming a hub of investments scams.
“Lately, this is becoming one of the pressing problems we have, it is very prevalent in the city,” lawyer Javey D. Francisco, SEC-Davao director, said.
He said that the roadshow that will go around the country is a sponsor investor information seminar aimed at educating the stakeholders about the pitfalls of pyramiding.
“It more on informing and educating the public on how to detect, avoid, report such investment scams and at the same time the seminar roadshow will give and present an alternative investments that are legitimate and registered,” Francisco said adding that familiarizing oneself who are the registered firms into investment is of big help in order not to fall prey on Ponzi-type schemes.
Each roadshows has an estimated 150 number of participants.
He said that what is alarming with these Ponzi-type schemes is that in time of registration, one will not detect the intention of the company as it will first look as legitimate, it is only when the operations start they are able to confirm the type of business such company is into.
Francisco reminded that only companies with a minimum paid up capital of P50 million, registered product and licensed agents or sales man are considered legal.
“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.
SEC is committed in 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.
At present, the commission is in investigatory works and fact-finding with some five more suspicious investment schemes which are operating the same with the recently closed Jacama Sales and Marketing.
“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, yungibangawalang 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.