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SEC flags ‘Elite’ group offering allowance and insurance cover

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THE Securities and Exchange Commission (SEC) has flagged another illegal investing group that is luring the public by offering weekly allowances and an insurance coverage.

The corporate regulator posted an advisory on its website Thursday against Elite Entrep Blue Print/Elite Entrepreneur Blue Print/EEBP. It said it operates on Facebook and invites people to invest a P115,000 capital in the firm.

But the SEC said EEBP is not authorized to solicit investments, as it does not have the required registration and license from the commission to operate such business.

“[T]he public is hereby advised to stop investing in the investment scheme being offered by the said entity,” it said.

The SEC likened EEBP’s operations to Teachers Financial Coaching Program/Teachers Financial Freedom Program/Elite Teachers Financial Program/Teachers Financial Program, another investment group that it said was operating illegally.

EEBP invites the public to invest P115,000 in exchange of P11,500-worth of Royale products. By selling the products and recruiting more members, the investors may be able to get their returns.

A weekly income of P5,000 to P50,000 and a P1-million insurance coverage in Bank of the Philippine Islands is also offered to investors as some of the “benefits” in becoming a member of EEBP.

The SEC said those that acted as salesmen, brokers, dealers of agents for the group may be fined up to P5 million or imprisoned for 21 years, or both, as penalty for violation of the Securities Regulation Code (SRC).

Section 28 of the SRC require persons engaging in the buying and selling of securities to secure a registration with the SEC.

The SEC said it will also give the names of those involved in EEBP to the Bureau of Internal Revenue for appropriate penalties and tax assessment. — Denise A. Valdez





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