SEC Philippines Issues Warning Against Investment Scams
The Securities and Exchange Commission (SEC) of the Philippines has issued a public warning against several entities that have been soliciting investments without proper authorization. According to a Facebook post by the SEC, entities such as Sandalwood Capitals Financial Advisory Service, Ate Anna’s Retail and Wholesale Online Shop, eToro, and XM are among those that have been flagged for offering investment opportunities with promises of high returns, indicative of a Ponzi scheme.
The SEC has clarified that these entities are not registered and do not possess the necessary permits to collect investments from the public. The modus operandi of some of these entities involves promising investors quick and substantial profits, which are paid from the contributions of new investors. This unsustainable practice eventually leads to a situation where the returns can no longer be paid out, especially to the later investors.
The public is advised to exercise caution and to refer to the complete list of advisories on investment scams provided by the SEC for more detailed information. The SEC encourages sharing this information on social media platforms like Facebook and TikTok to raise awareness among potential investors.
For any reports of illegal activities similar to these investment scams, the public can contact the SEC’s Enforcement and Investor Protection Department (EIPD) at the provided phone number, email address, or by visiting their office at the SEC Headquarters in Makati City.