The Securities and Exchange Commission (SEC) has warned against business entities that solicit investments for cryptocurrency trading and online selling, saying these entities do not have the required permit from the agency to conduct such business.
In particular, the SEC said Forsage, RCashOnline and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines Inc. violate the rule on license laid out by the Securities Regulation Code (Republic Act 8799) and may face a maximum fine of P5 million or imprisonment of 21 years or both.
It said Forsage, which is headed by Lado Okhotnikov, is not duly registered with the SEC and lacks the necessary license to solicit, accept or take investments from the public or issue investment contracts and other forms of securities.
RCashOnline, which claims to represent Royale Business, is likewise not registered as a corporation or a partnership. It neither possesses a secondary license to solicit investments from the public, it added.
SEC said the certificate of registration of Saint John of Jerusalem Knights of Malta Foundation has been revoked as early as Feb. 3, 2003 for noncompliance with reportorial requirements.
Forsage touts a crowdfunding International Platform or a Smart Contract Crypto Earning Program based on the Ethereum (blockchain technology, which supposedly “provides long-term active and passive income to investors through a crowdfunding referral system.”
As posted online, Forsage offers two commission payout systems or compensation plans for a minimum of P600, and a maximum of almost P600,000. An investor needs three referrals to complete the cycle.
Forsage’s so-called smart contract is synonymous to an investment contract and SEC said an investment contract is a security and, therefore, must be duly registered with and approved by the SEC before it could be sold or offered for sale to the public, pursuant to Section 8 of The Securities Regulation Code, SEC said.
The SEC said that aside from lacking the necessary licenses, Forsage’s compensation plan “resembles a Ponzi scheme, where investors are paid using the contribution of new investors.
The SEC said Forsage is not in the list of virtual currency exchanges registered with the Bangko Sentral ng Pilipinas.
RCashOnline offers business packages, which include Royale products for resale for seven accounts with insurance worth P1 million, the SEC said.
The scheme of RCashOnline relies heavily on recruiting members in exchange for high monetary rewards rather than on selling products, it said.
The Saint John of Jerusalem Knights of Malta Foundation, on the other hand, invites members to join its programs for free.
The group promises members P5,000 worth of grocery items every month and offers 21-year-old male agriculture students and graduates all-expenses-paid training with $1,000 allowance in Israel for six months, in exchange for personal information.
The group also claims that it will soon purchase a 100 hectares of land for future housing/agricultural projects.
