Gold bar seller denies connection with entity claiming to be its Philippine unit

Posted on March 30, 2015

EMGOLDEX, an online store selling gold bars which the Securities and Exchange Commission (SEC) has warned the public against, has denied any connection with the entity claiming to be its local branch, Emgoldex Philippines.

“Emgoldex has no association with fraudulent operators allegedly trading as Emgoldex Philippines. We do not condone the behavior of these people who are using our name without authorization,” Emgoldex said in an e-mail last week.

Emgoldex said it will continue discussions with the Philippine government “as we would like to see these people brought to justice.”

“They have no authority at all to use our Emgoldex name, and are causing our brand damage and our customers harm. If you are aware of who these people are, we encourage you to refer them to the SEC,” the e-mail read.

Emgoldex said it provides buyers “an opportunity to buy gold with a purity of 999.5/1000 or better” as well as “rewards to customers who refer other bona fide purchasers for value to the store.”

“We do not engage in investment advice or activity,” it said.

In an advisory last February, the SEC had warned the public, especially Facebook users, not to invest in a certain Emgoldex Philippines’ “Pinoy Style Patak Patak,”, which reportedly solicits investment online with a promise of high returns.

“Per verification, Emgoldex Philippines is not a registered corporation or partnership,” the SEC said in the advisory.

“Likewise, such entity is not authorized to solicit investments from the public as it did not secure prior registration and/or license or permit to solicit investments from the Commission as required under Section 8.1 of the Securities Regulation Code,” the advisory read.

The regulator said Emgoldex lures individuals to shell out money by promising that a P1,000 investment will earn profits from P5,000 to P10,000, and a placement of P35,000 will yield P180,000 to P360,000.

In an announcement on its Web site in February, Emgoldex said it merged with Global Swiss Trade SA, a Swiss-regulated company that also acts as its supplier. -- Daphne J. Magturo