SEC warns of new pyramiding scams

by Alvin Elchico, ABS-CBN News

Posted at Mar 12 2013 05:37 PM | Updated as of Mar 13 2013 05:15 PM

MANILA, Philippines - Fresh from the disastrous results of the Aman Futures scam, the Securities and Exchange Commission (SEC) has again issued an advisory to consumers in Davao and Surigao of two separate potential investment fraud.

SEC chairperson Teresita Herbosa identified these two potential scams as Connectacons Inc. and TVI Express Holidays Phils.

The target company in Tandag City, Surigao del Sur has reportedly been encouraging teachers to invest P16,800 with a promise to "double the money" within 6 months and to get $10,000 for another 6 months.

According to the SEC advisory, those who invested have not received the promised amount and even return of their investment despite repeated demands.

In Davao City, a SEC advisory warns people to be wary about the unauthorized sale of insurance and pre-need plans specifically life insurance and memorial plans by means of a pyramiding scheme.

According of the SEC, the scheme offers members life insurance, memorial service and big income potential provided they pay a specific amount and invite and adopt three persons to join and also the same.

Since the Aman Futures scam exploded, the SEC has issued seven advisories to the public involving various companies with illegal schemes. These advisories had identified Visioner2020, Reyality, Ads Zens, an informal group victimizing consumers in Imus, Cavite and Preferred Forex Union Ltd.