The Securities and Exchange Commission (SEC) has flagged the business of Platinum Coin Pawnshop which, it said, engages in what appears to be a Ponzi scheme.
As posted online, the SEC said Platinum Coin/Platinum Coin Pawnshop is offering investments to the public for a minimal amount of P1,000 up to P650,000. Investors can earn 15 percent up to 50 percent after 30 days.
The SEC said the company also promises potential investors a one-time 5 percent outright commission.
“If an investor applies as an official team leader, he/she can earn a passive income of 2.5 percent monthly, cash gift worth P10,000, up to P70,000 (cold cash) and P500 worth of load weekly,” the SEC said.
“Lastly, the investor can also earn 20 percent yearly bonus,” it added.
The SEC also noted Platinum Coin is engaged in online lending without the required license under the Lending Company Regulation Act.
The SEC said what Platinum Coins is offering is an investment contract which has to be registered with the agency and its agents also licensed by the agency.
The SEC added the company is not registered with the agency nor has the requisite license for what it does — solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities.
Platinum Coin, however, is registered with the Department of Trade and Industry as an enterprise.
“Further, the scheme employed by Platinum Coin 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 and is detrimental to subsequent members in case of scarcity of new investors,” the SEC said.
“In view thereof, the public is hereby advised not to invest or to stop investing in the investment scheme being offered by Platinum Coin,” it added.
