THE Securities and Exchange Commission (SEC) continues to flag more fraudulent investment groups for offering securities without obtaining regulatory licenses.

An advisory on the SEC website last week warned the public against investing in Champion International Corp./Madenu Champion Marketing International, Inc. (Champion), which it said does not have authority from the regulator to solicit investments.

“[T]he Commission wishes to inform the public that Champion is not authorized to solicit, accept or take investments from the public nor to issue investment contracts and other forms of securities…since it does not have a secondary license issued by the Commission…,” it said.

It said the company operates by inviting the public to invest their money in exchange of a 400% return on investment in more or less than 30 days. It offers a P3,000 minimum entry package with a P100 registration fee, which would reward an investor P3,000-worth of herbal products such as whitening soaps, coffee, healing oil and food supplements.

Other programs collect as much as P30,000 from an investor with a P1,000 registration fee on top, which is supposedly equivalent to a net profit share of P64,800.

Champion also offers a “Fasttrack” option where a member who could recruit 10 people within two weeks may earn extra through profit sharing.

“Those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly,” the SEC said.

It identified the incorporators, directors and officers of Champion as Felicisimo Fallurin Enduma, Jr., Joan Delos Reyes De la Pena, Cyril Fallurin Enduma, Arnold Miranda Alzate and Gilbert Valerio Enduma, Jr.

“[T]he names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes be correspondingly assessed,” it said.

Under the Securities Regulation Code, violators may be fined a maximum of P5 million or 21 years of imprisonment, or both.

“[T]he public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of Champion,” the SEC said. — Denise A. Valdez

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