The Securities and Exchange Commission filed on Monday a criminal complaint against an investment company that offered a 33-percent return after just 21 days.
It was the fourth complaint filed by regulators with the Department of Justice since it cracked down on so-called "pyramid" scams that lure their victims with the promise of unrealistic profits.
The respondents in the 29-page complaint for unauthorized selling of securities include Klikmart Dragon Inc., Klikmart Shopping Club Corp., and its incorporators identified as Romel L. Juaton, Dennis A. Occidental, Luzvimindo P. Cabaluna, Mary Louiza M. Amacio, Devon T. Garganera, Athos C. Garganera and Rowen G. Cabaluna.
Klikmart operated in suburban Quezon City and Sta. Rosa, Laguna for almost one year, selling securities as "membership bonus," the SEC said in the complaint.
The SEC said Klikmart Shopping Club Corp and Klikmart Dragon appeared to be the same company since they were run by the same people.
Violation of the securities code is punishable by up up to 21 years in prison with fines of up to P5 million.
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