The Securities and Exchange Commission has called on the public to stop investing in companies identified with the Program and the Financial Education and Entrepreneurial Development (FEED) Program.
In its advisory released this week, the SEC Enforcement and Investor Protection Department said the entities are “not registered with the Commission either as corporations or partnerships.”
“There being no primary license, they are not authorized to solicit investments from the public,” it added.
The advisory also warned that those “who act as salesmen, brokers, dealers or agents in selling or convincing people to invest… including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC (Securities Regulation Code)… and that their participation may result in them getting imprisoned for a maximum of 21 years or a fine of P5 million or both, dependent on the ruling of the court.”
The agency reiterated that on Jan. 10 it also released a similar advisory against the Teachers Financial Coaching Program/Teachers Financial Freedom Program/Elite Teachers Program/Teachers Financial Program.
The advisory came about after the agency received an information that the entities were “engaged in soliciting investments from the public, particularly the teachers, military personnel, police officers, OFWs (overseas Filipino workers and other professionals.”
Based on the social media posts of the entities, the agency said, “public school teachers are enticed to invest an amount of P115,000 or they are assisted by the entities to obtain a loan from a bank for the said amount in exchange for P11,0000 worth of Royale beauty products/food supplements and a cheque amounting to P10,500.
“The investor will be required to recruit new members to further receive another P11,000 for each recruit. Training seminars on financial literacy and promises of a debt-free life, double net pay, owning a car, travel with family and savings in the bank are likewise offered by the entities,” it added.