The Securities and Exchange Commission (SEC) has issued a cease and desist order against Platinum Coin Pawnshop for operating an illegal investment scheme.
Platinum Coin represents itself as an entity engaged in a legitimate lending business in Dipolog City, Zamboanga del Norte. It supposedly offers and extends loans to the public with an interest rate of 20 percent based on a 60-day period, with payment collection made on a daily basis.
The SEC said Platinum Coin entices the public to invest anywhere from P1,000 to P650,000, with the promise of 15 percent to 50 percent guaranteed returns within 30 days. Platinum Coin then executes an agreement with its investors and issues post-dated checks.
Investors are also promised an annual bonus of 20 percent of their investment, plus a 5 percent commission for new recruits.
“The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others,” according to the SEC.
The SEC said Platinum Coin’s offer falls under securities sold that has to first be registered with its office.
Post-dated checks issued by Platinum Coin fall within the definition of securities in the form of “evidence of indebtedness” which were issued in exchange for investments solicited from the public, the SEC added.
“The Commission thus finds and so holds that the post-dated checks were issued to its investors in lieu of shares or interest in Platinum Coin in an attempt to circumvent the law,” it said.
Platinum Coin is not registered with the SEC. – Ruelle Castro
