Why SEC issued warning vs Emgoldex Philippines

ABS-CBN News

Posted at Feb 16 2015 07:49 PM | Updated as of Feb 17 2015 07:11 PM

Firm denies it's a fake company, says it's registered in Germany

MANILA – The Securities and Exchange Commission (SEC) has issued a warning against a company that is luring investors through claims of huge returns.

The firm, Emgoldex Philippines, is looking for investors through its “Pinoy Style Patak Patak,” a scheme that involves the promise of high returns where an investment of P1,000 can earn profits of P10,000, or an investment of P35,000 can yield P180,000 to P360,000.

However, SEC said Emgoldex Philippines is not a registered corporation or partnership and is not authorized to collect investments from Filipino investors.

The SEC added that the website of Emgoldex Philippines does not indicate a Philippine address, but only contact numbers.

"SEC has a regulation sa mga kumpanya. Kung wala sa database, mahirap habulin. Kapag dito nagco-close ng deals, may jurisdiction tayo,” said SEC spokesperson Gerard Lukban.

SEC said the investment scheme also involves a pyramiding-style scheme that requires investors to look for two more investors.

"Ito po sa pyramiding kung susuriin ang investment-style, nire-require mag-recruit tapos may bonus. Ang networking, ‘di masama per se kung ang puhunan ay sa sipag sa pagbebenta kinukuha, pero kung sa pag-recruit ang payout ay kinukuha sa baba, pag nag-collapse mawawalan ng kita. Eventually, magco-collapse kung walang produktong binebenta,” said Lukban.

An overseas Filipino worker (OFW) in Seoul, South Korea said he was lured to invest P36,500 in Emgoldex Philippines because of the gold bars being sold by the company.

The OFW said many of his co-workers were also lured to invest a month’s salary for the opportunity to earn P180,000 to P360,000 from their investments.

However, he said he is starting to have doubts on the scheme.

"Yung ibibigay nila sa’yo galing din sa mga taong na-engganyo mo. Papano po pag wala nang sumali?" he said.

An employee of Emgoldex Philippines, meanwhile, denied allegations that it is a fake company, saying the company is registered in Germany. The firm has yet to issue an official statement.

SEC said companies found selling unregistered securities in the Philippines may face penalties amounting to P15 million, and its officers may face imprisonment of up to 21 years. -- Report from Zen Hernandez, ABS-CBN News