THE Securities and Exchange Commission (SEC) is warning the public against engaging with Kapiboma Networking/Kapiboma Global Marketing, Inc., which it said is not authorized to operate for investing purposes.
In an advisory on its website yesterday, the corporate regulator said it found Kapiboma operating an illegal investment scheme after receiving numerous reports from the public.
“The public is hereby informed that Kapiboma Networking/Kapiboma Global Marketing, Inc. are not licensed or granted a permit by the SEC to sell or offer securities or solicit investments from the public,” it said.
The regulator said the group works by inviting investors to put in P5,000 into the company in exchange for P5,000-worth Kapiboma herbal products. Members are also required to give P1,000 every month as “monthly dues,” which is used to pay for the company’s water and electricity bills and compensation for employees.
Among the products members may get are Golden Moringa 4 in 1 Malunggay Coffee, Golden Moringa Mangosteen Stevia Coffee, Golden Moringa Stevia Coffee, Mangosteen Guyabano, Mangosteen and Guyabano Herbal capsule.
On top of that, Kapiboma commits a condominium incentive if members recruit five individuals, who also each must invite five more into the company. Those that are successfully able to do so may move into the condominium in 45-60 days. The interior design of the unit priced at around P75,000-100,000 will also be given for free.
Other incentives are a P1,000 direct referral fee, a car plan, an international cruise, a parking slot, a P4-million business package and a P1-million life insurance.
The SEC said this operation is against the Securities Regulation Code, as Kapiboma does not have the required license from the SEC to solicit investments.
“[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 Kapiboma,” it said. “The public is further advised not to invest or stop investing in any investment scheme being offered by aforesaid entities/individuals.”
As penalty, Kapiboma may be charged up to P5 million or a maximum of 21 years in prison, or both. The SEC said it also submitted to the Bureau of Internal Revenue the names of the involved individuals. — Denise A. Valdez