By Denise A. Valdez, Reporter
THE Securities and Exchange Commission (SEC) has flagged two groups operating an illegal investment scheme targeted to teachers, military, police and overseas Filipino workers (OFWs).
In an advisory on its website, the SEC warned the public against engaging with individuals and groups identifying as ”The Program” and “Financial Education and Entrepreneurial Development (FEED) Program” as these are not registered with the regulator.
“Based on the records of the Commission, The Program and the FEED Program are not registered with the Commission either as corporations or partnerships. There being no primary license, they are not authorized to solicit investments from the public,” it said.
The SEC said the companies operate similar to Teachers Financial Coaching Program (TFCP)/Teachers Financial Freedom Program (TFFP)/Elite Teachers Financial Program (ETFP)/Teachers Financial Program (TFP), which it already warned the public against in an advisory earlier this month.
The companies operate by inviting clients to invest P115,000 — or if the cash is unavailable, they offer assistance in obtaining a bank loan to raise the cash — in exchange a P10,500 cheque and P11,000 worth of Royale beauty products or food supplements.
Investors are also required to invite more members to the company to get P11,000 for every recruited person. “Training seminars on financial literacy and promises of a debt-free life, double net pay, owning a car, travel with family and savings in the bank are likewise offered by the entities,” it said.
As these invitations are made publicly through social media, the SEC said it is against the Securities Regulation Code, which say securities may not offered publicly without a registration statement approved by the SEC.
Given the companies’ failure to comply with regulations, The Program and the FEED Program may be penalized with a maximum fine of P5 million, or imprisonment of 21 years, or both.
“Those who act as salesmen, brokers, dealers or agents in selling or convincing people to invest in The Program and the FEED Program including soliciting investments or recruiting investors through the internet may be held criminally liable…,” the SEC said.
“In view thereof, the public is hereby advised to stop investing in the investment scheme being offered by The Program and the FEED Program and their representatives,” it added.
