SEC warns versus ‘Narcfunds’ scheme

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THE country’s corporate regulator is warning the public against investing in a group called Narcfunds/Narcsfund, which it said is operating without a license.

The Securities and Exchange Commission (SEC) gave out a recent advisory on individuals going around inviting people to put their money in a group called Narcfunds/Narcsfund.

The group is allegedly operated by a certain Kwon, Jin-ho who travels to Korea, United Kingdom, Singapore and the Philippines, the SEC said. Narcfunds/Narcsfund is supposedly operating through a website and a Facebook group called “Team PH Leaders,” enticing the public to “donate” and invite more members in exchange for getting a portion of the company’s collections.

The Narcfunds website describes the group as a non-government organization “that helps drug addicts afford treatments that can release them from addiction.”

“The public is hereby advised to exercise due care and caution in investing their money in this type of scheme being offered by Narcfunds/Narcsfund and/or its agents,” the SEC said.

Because the scheme involves selling securities to the public, the SEC said Narcfunds/Narcsfund should have registered as a corporation first, obtained the appropriate license to sell securities, and registered the securities with the SEC.

Salesmen, brokers, dealers and agents behind Narcfunds/Narcsfund may now be criminally liable for violation of the Securities Regulation Code, and may face a maximum fine of P5 million, a maximum of 21 years in prison, or both.

Names of those involved will also be reported to the Bureau of Internal Revenue for appropriate penalties and/or taxes. — Denise A. Valdez