THE SECURITIES and Exchange Commission (SEC) flagged YDYS Trading OPC for soliciting investments from the public without a license.
The commission said in an advisory on Wednesday that while YDYS Trading is registered as a One Person Corporation, it is not authorized to solicit investments from the public as it has not secured prior registration or license.
YDYS Trading was only licensed to “engage in, conduct and carry on the business of buying, selling, distributing, marketing on wholesale and retail basis… provided that the corporation shall not solicit, accept or take investments and placements from the public nor shall it issue investment contracts.”
“Thus, the above-quoted specifies that the corporation is prohibited from taking investments and placements as it requires a secondary license,” the regulator said.
The trading firm has been offering investments to the public ranging from P300 to P50,000.
“As posted online, investors earn 35% for a ten-day period; 35% for the next ten days; 35% for the following ten days; and 145% earnings for the next fifteen days for a total of accumulated earnings of 250% in just 45 days,” the SEC said.
The SEC reported that the company operates through various methods, including a direct referral bonus, where an upline recruits another investor and will earn 50% of the package availed by the direct downline.
An upgrade bonus can also be earned when the downline wishes to increase the current value of its package, where the upline earns 50% from the upgraded package. There is also a commission scheme.
“As the above-described schemes involve the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities should be duly registered and that the concerned corporation and/or its agents have the appropriate registration and/or license to sell such securities to the public,” the SEC said.
Individuals who act as salesmen, brokers, dealers or agents for YDYS Trading in selling or convincing people to invest in the investment scheme may be prosecuted and held criminally liable.
Penalties include a maximum fine of P5 million or 21 years of imprisonment.
“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of YDYS Trading and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the SEC added.
YDYS Trading was reached out for comment through their Facebook page, but has not responded as of press time. — Luisa Maria Jacinta C. Jocson
