MANILA, PHILIPPINES - The Emgoldex and other related entities has been sued by the Securities and Exchange Commission (SEC) for allegedly offering and selling investment schemes without a license.
According to SEC, criminal complaints has filed before the Department of Justice against the investment companies Emgoldex Philippines, Global Intergold and Prosperous Infinite Philippines Holdings Corp. (PIPHC).
The companies violated Section 8 and 28 of the Securities and Regulation Code (SRC) for offering and selling investment schemes to the public without a license.
If convicted, an imprisonment of 7-21 years or a fine of not more than P5 million, or both for each violation of the SRC.
A cease and desist order against the firms has also been issued by the SEC.
Assistant director Lalaine Monserate of the SEC’s Enforcement and Investor Protection Department said the companies operates by luring investors using the Ponzi scheme, wherein high return payouts are promised through recruitment and with 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.
SEC chairperson Teresita Herbosa said the government agency is open to help, receive and assist the victims, wherein most 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. - Carl E
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