SEC cautions investors over ‘Pluggle’ scheme

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THE Securities and Exchange Commission (SEC) on Thursday cautioned the public when dealing with Pluggle, Inc., saying the company has no license or permit allowing it to solicit investments from the public.

In an advisory, the SEC Enforcement and Investor Protection Department said  Pluggle has been promising investors returns of between 30% to 100% in a span of 12 days for an investment of at least P1,000.

Pluggle claims its members earn money from six ways, including a P100 bonus for registration, and up to P400 in bonuses for those who can recruit new members. Transactions are done via online currency bitcoin, or through other legitimate members or leaders.

“The public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Pluggle or its representatives,” the corporate regulator said.

While Pluggle has been registered as a corporation, the SEC noted the company has not secured the necessary permits stated under Sections 8 and 12 of the Securities and Regulation Code that would allow it to solicit investments from the public. 

Violation of these provisions may lead to a maximum fine of P5 million, or a criminal sentence of up to 21 years.

The SEC also noted that the Bangko Sentral ng Pilipinas does not endorse the use of any type of virtual currencies, but is looking at regulating its use. — Arra B. Francia