Financial Crime World

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Ponzi Scheme Alert: SEC Flags 8 Entities in Philippines for Fraudulent Investment Schemes

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The Securities and Exchange Commission (SEC) has issued a warning against eight entities in the Philippines that are operating like Ponzi schemes, soliciting investments without proper licenses.

Affected Companies

  • House of Forex
  • H. Flores Business Consultancy Services
  • Foto Trading International
  • HarvestCTMall
  • Crypace Limited/Crypace Financial Consultancy Services
  • DNKC Corp.
  • Gainz Philippines
  • S&M ventures
  • Salon de Alexis

According to the SEC, these entities are not authorized to solicit investments because they lack necessary licenses. The commission advised the public against dealing with them, especially giving in to their solicitations for investments.

Investigation Findings

The SEC warned that House of Forex/H. Flores Business Consultancy Services is offering seven ways to earn high-interest earnings, which is a type of security that requires registration with the commission before it can be offered and sold to the public. However, the company has failed to register as a corporation or partnership, making its actions fraudulent and in violation of Sections 8, 26, and 28 of the Securities Regulatory Code.

The other seven entities flagged by the SEC resemble pyramid schemes, where investors earn through recruitment fees instead of the sale of actual products/services. Investors are paid using the contribution of new members, which is a classic hallmark of Ponzi schemes.

Previous Alerts

This latest alert comes after several firms were previously named by the SEC for engaging in similar fraudulent activities.

SEC’s Commitment to Stopping Illegal Activities

The commission vowed to remain unwavering in its efforts to stamp out illegal investment-taking activities through financial literacy campaigns and advisories to the public.