THE Securities and Exchange Commission (SEC) said it has flagged 14 groups that are allegedly taking advantage of the coronavirus disease 2019 (COVID-19) pandemic to scam investors and consumers.
In separate advisories, the SEC said these groups are scamming people into “unauthorized investment-taking activities and other fraudulent activities since the declaration of a national public health emergency following the confirmation of local transmission of the new coronavirus disease in early March.”
“The SEC urges the public to stop investing in MAGINVESTKA.ONLINE (MIK.O), which purportedly trades Bitcoin against the US dollar, and Azenzo-Online, which supposedly operates as an independent crowdfunding platform,” it said.
According to the SEC, MIK.O is operated by a person or persons using the pseudonym “Mag Forex.” It entices the public to invest with a guaranteed 2 percent return daily or 200 percent in total for a period of 100 days.
Azenzo-Online meanwhile uses a “Deposit-Donation, Withdrawal-Blessing” scheme similar to that of Kapa-Community Ministry International. It promises a 30 percent return in as early as five, 10 or 15 days and a 100 percent “Donation Return” after 20 days.
“Based on the records of the Commission, neither MIK.O nor Azenzo-Online registered as a corporation or partnership. Furthermore, they did not secure prior registration or license to solicit investments from the public, as required under Sections 8 and 12 of Republic Act No. 8799, or the Securities Regulation Code,” the SEC said.
The SEC said it flagged the activities of individuals and groups using the names of certain foundations or representing themselves as such.
“The Commission particularly warned the public against a text scam using the name of President Rodrigo R. Duterte. Under the scheme, one would receive a text message stating that he or she won P750,000 from the President: Rodrigo Duterte Charity Foundation through an electronic raffle,” it said.
The SEC said its records show that the President: Rodrigo Duterte Charity Foundation is not registered as a corporation.
“Those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes may be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years or both under the Securities Regulation Code,” the SEC said.
“Those who engage in text scams also face criminal prosecution for violation of the Revised Penal Code, the Cyber Crime Law and Data Privacy Act,” it added.
Emilio Aquino, SEC chairman, said Republic Act No. 11469, or the Bayanihan to Heal as One Act, also penalizes those participating in cyber incidents that make use or take advantage of the current crisis to prey on the public through scams, phishing, fraudulent emails or other similar acts with two-month imprisonment or a maximum fine of P1 million or both.
“We encourage the public to carefully study and examine offers and invitations to participate in schemes promising easy money especially in these difficult times,” Aquino said.
“On our part, the Commission will continue monitoring investment-solicitation activities online and on the ground to stop unscrupulous groups from putting any other burden on Filipinos, especially the vulnerable, amid the COVID-19 pandemic,” he added.
