July 02, 2024 - The Securities and Exchange Commission (SEC) has issued a warning to the public against investing in seven (7) entities that are offering and soliciting investments from the public without a license from the SEC.
The entities are:
- EMPRESSLY SKIN CARE CENTER CORP.
- LINE CRYPTO AND DRY GOODS TRADING
- SPOTIPAY
- METAMAX ASIAN INC./METAMAX
- BASS OIL
- GRAND HORIZON INTERNATIONAL
- ELLA RECCA’S KITCHEN
These entities are not registered with the SEC and therefore are not authorized to solicit investments from the public. The SEC warns that these entities may be operating Ponzi schemes, which are fraudulent investment schemes that promise high returns with little or no risk. In a Ponzi scheme, money from new investors is used to pay off earlier investors, creating the illusion of high returns. However, the scheme eventually collapses when it becomes impossible to recruit enough new investors to pay off the existing ones.
The SEC advises the public to be cautious when investing in any entity and to only invest in entities that are registered with the SEC. The SEC also advises the public to watch out for the following red flags of a Ponzi scheme:
- High returns with little or no risk: If an investment sounds too good to be true, it probably is.
- Unsolicited investment offers: Be wary of investment offers that you did not solicit.
- Lack of transparency: Ponzi schemes often avoid providing detailed information about their investments.
- Pressure to invest: Ponzi schemers often pressure potential investors to invest quickly.
If you believe that you may have been the victim of a Ponzi scheme, you should contact the SEC's Enforcement and Investor Protection Department (EIPD) at 8818-6047 or [email address removed]. You can also visit the EIPD at 9/F, The SEC Headquarters, 7907 Makati Avenue, Salcedo Village, Brgy. Bel-Air, Makati City.
Here are some additional tips for protecting yourself from investment scams:
- Do your research: Before investing in any entity, make sure to research the company and its investment offerings. You can check the SEC's website to see if the company is registered.
- Get it in writing: Get all investment offers in writing and make sure you understand the terms and conditions before you invest.
- Don't invest more than you can afford to lose: Only invest money that you can afford to lose.
- Diversify your investments: Don't put all of your eggs in one basket. Spread your investments out among different types of investments.
- Seek professional advice: If you are unsure about an investment, consider seeking professional advice from a financial advisor.
By following these tips, you can help protect yourself from investment scams.