Connect with us

Hi, what are you looking for?

Economy

SEC warns against two unauthorized investment groups

THE SECURITIES and Exchange Commission (SEC) is warning the public against engaging with groups that solicit investments from the public without a license to sell securities.

In advisories on its website, the corporate regulator flagged Cashdrop/Cashdrop Online Store and Lokal.Plate Corp. as unauthorized operators of investment schemes.

It advised the public “not to invest or stop investing in any investment scheme being offered by (Cashdrop and Lokal.Plate)” and to “exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it.”

In the case of Cashdrop, the SEC said the group has no record of registration with the commission. All it has is a business name registration given by the Department of Trade and Industry.

“Nonetheless, Cashdrop is not authorized to solicit investments from the public since it has not secured prior registration and/or license from the commission as prescribed (by the Securities Regulation Code),” it said.

The group offers packages that supposedly allowed investors to double their money in 15 days.

Lokal.Plate runs a similar scheme and requires passive investments from the public. The group offers franchising for a supposed food service provider called “Lokalplate”, where orders are made through a digital link that franchisees must promote.

The group promises a 15% to 20% earning for every ordered food, and a commission of P3,000 for every recruited investor.

Like Cashdrop, Lokal.Plate is not authorized to solicit investments from the public, the SEC said. The group is a registered corporation, but does not have the secondary license to allow the operation of an investment scheme.

The SEC noted that Lokal.Plate’s articles of incorporation explicitly says it “shall not solicit, accept or take investments/placements from the public neither shall it issue investment contracts.”

For violating the Securities Regulation Code, the people behind Cashdrop and Lokal.Plate may be penalized with a P5-million fine, a 21-year imprisonment, or both. — Denise A. Valdez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Globe Telecom, Inc. said on Friday that it had inked loan facilities with BDO Unibank, Inc. and Land Bank of the Philippines for P10...

Economy

Metro Pacific Investments Corp. (MPIC) announced on Friday that its president and chief executive officer, Jose Ma. K. Lim, will be retiring effective Dec....

Economy

REAL ESTATE developer Arthaland Corp. raised P3 billion from its Series D preferred share offering, according to the Philippine Stock Exchange, Inc. (PSE) said...

Economy

Venture capital firm Kickstart Ventures, Inc. on Friday said the Ayala group had invested in SlashNext, a company that combats phishing attacks. Kickstart manages...

Economy

Volunteerism has been a key part of Globe’s corporate culture through its various employee engagement programs. In contributing to nation-building, the company is encouraging...

Investing

The UK Government’s Flexible Working Taskforce has published practical guidance for employers designed to support hybrid working models, in a bid to help organisations...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.