SEC sues Emgoldex over alleged investment scam

The Securities and Exchange Commission (SEC) has sued Emgoldex for allegedly selling and offering investment schemes without a license.

SEC said two cases were filed before the Department of Justice (DOJ) against related entities Emgoldex, Global Intergold, and Prosperous Infinite Philippines Holdings Corp.

The companies allegedly sold unregistered securities to the public without a license, thus violating Section 8 and 28 of the Securities and Regulation Code (SRC).

Each violation of the SRC is punishable, if convicted, with a fine of not more than P5 million or imprisonment of 7-21 years, or both.

SEC has also issued a cease and desist order against the firms.

Lalaine Monserate, assistant director of the SEC’s Enforcement and Investor Protection Department, said the companies operate a “Ponzi” scheme, wherein high return payouts are promised through recruitment.

Most investors who have fallen victim to the investment scheme are young Filipinos and overseas Filipino workers, as most of the selling and marketing of unregistered securities are largely done online.

SEC chairperson Teresita Herbosa said the government agency is open to receive and assist victims, including OFWs, with their affidavits.

As early as February, SEC already issued a warning against investing in Emgoldex.

SEC alleged that the company lures investors through promises of high returns, where an investment of P1,000 would earn profits ranging from P5,000 to P10,000 or a placement of P35,000 would yield P180,000 to P360,000.

Source: www.abs-cbnnews.com