The Securities and Exchange Commission (SEC) has flagged the investment solicitation of Primelogix Marketing Inc. which it likened to a pyrammiding scheme.
The SEC also warned the public about the JBF Goldminer International/Gold de Luck which claims to be a gold mining investment company that offers a guaranteed 10 percent daily profit for a period of 30 days.
The SEC said JBF Goldminer International is not registered with its office and it now authorized to solicit, accept or take investments/placements from the public.
Primelogix which represents HongKong-based Melon Plus, is enticing prospective investors who wish to start an affiliate and dropshipping business to subscribe to a minimum package of P2,990 who can enjoy privileges including discounts. An affiliate/investor will then earn by recruiting more people who will also subscribe and avail of the package.
The SEC said while Melon plus is registered with Companies Registry of Hongkong, it is operating in the Philippines under the name Primelogix Marketing Inc. which is not authorized to solicit investments from the public.
The pyramiding scheme involves securities because for payment of a sum of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits, the SEC said.
“The scheme that requires recruitment in a two-pronged structure takes the form of a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Here, the recruitment fees collected from new recruits are used to pay the recruiting commissions to earlier recruits,” it added.
The SEC said individuals who act to solicit or convince people to invest in Primelogix and JBF Goldminer may be held criminally under the Financial Products and Services Consumer Protection Act and the Securities Regulation Code.
