THE Securities and Exchange Commission (SEC) warned the public against unlicensed investment companies pretending to be online sellers or cryptocurrency traders.
In a statement Wednesday, the regulator identified Forsage, RCashOnline and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. as companies not registered with the SEC.
In an advisory on its website, the SEC said Forsage is claiming to be a “crowdfunding international platform” or “smart contract crypto earning program” which uses cryptocurrency to generate earnings. It promises passive income via a crowdfunding referral system.
The SEC said this is equivalent to offering an investment contract. In order to be legal, Forsage should register with the commission and acquire a secondary license authorizing it to sell securities.
RCashOnline also solicits investments from the public via a selling and reselling model. The SEC said it offers business packages priced between P18,660 to P130,660, including products for resale, but tells investors that earnings will only be generated by recruitmenting new members.
Calling this model “clearly unsustainable,” the SEC said RCashOnline is not registered with the commission and has no authority to solicit investments.
These activities violate the Securities Regulation Code and may be penalized with up to a maximum fine of P5 million, imprisonment of up to 21 years, or both.
The SEC said it also investigated The Saint John of Jerusalem group and found that it promises members monetary support and overseas training opportunities in exchange for personal information.
A member may obtain P5,000 worth of groceries every month on a credit basis. Males aged 21 years old who are either studying or have graduated with an agricultural degree are also enticed with training opportunities in Israel for six months, all expenses paid, with a $1,000 allowance.
The SEC said the group’s registration was revoked by the commision in February 2003.
“The public is… warned that any matter entered into by a revoked corporation that is not for the purpose of liquidation will be a void transaction because of the non-existence of the corporate party,” it said.
“[T]he public is advised not to join in any scheme offered by any individuals/agents/entities representing (The Saint John),” it added. — Denise A. Valdez
