The Securities and Exchange Commission (SEC) has warned the public against investing in a company that uses the name of financial giant Morgan Stanley.
The SEC said a group of individuals behind the YouTube channel Mr.shades TV, is enticing the public to invest in a “fake” Morgan Stanley Investment Firm.
SEC said as posted online, the fraudulent Morgan Stanley Investment Firm claims it is an app owned by Morgan Stanley, which provides real-time investment based on the port container shipping index.
“The (fraudulent firm) allege that it is legal, safe and permanent, and is an important tool for the Filipino people to increase their wealth,” SEC said in a statement.
The firm claims an investor can earn 50 percent daily profit, 10 percent from direct referral, and minimum daily salary of P350 up to P6,500.
The SEC noted the firm is offering investments opportunity to the public with a minimum amount of P500.
The SEC said Morgan Stanley Investment Firm’s offer has the characteristics of a Ponzi scheme where money from new investors are used in paying fake profits to prior investors and is designed mainly to favor its top recruiters and prior risk takers.
“The offering and selling of securities in the form of investment contracts using the Ponzi scheme which is fraudulent and unsustainable, is not a registrable security. The Commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme,” it said.
The SEC said the Morgan Stanley Investment Firm is not registered with its office and operates without the required license and authority to solicit, accept or take investments from the public.
The SEC said individuals acting as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers and enablers of Morgan Stanley Investment Firm, such as Mr. shades TV, may be held liable under the Financial Products and Services Consumer Protection Act and the Securities Regulation Code and could face a maximum fine of P5 million or 21 years of jail time.
