The Securities and Exchange Commission (SEC) has warned the public against investing in Double M Global Trading and Axiecrowd Asia, which operate online schemes that promise to grow investments by as much as four times in just two weeks.
In an advisory, the SEC’s Enforcement and Investor Protection department said a certain Melvin Martinez spearheads the operations of Double M, also known as Double M FX Financial Consultancy Services.
As posted online, the company is offering investments to the public for a minimum amount of P500 and promises earnings of 300 percent for their investment in 15 days. It said the company is investing the money in foreign exchange and casinos.
There is also an additional income for direct referral and an “unlimited level of commission.” A payout of 50 percent, 100 percent and 150 percent will be earned every 5 days for a total of 300 percent subject to a 10-percent withdrawal maintenance deduction.
“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Double M Global Trading/Double M Fx Financial Consultancy Services and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the SEC said.
Axiecrowd, meanwhile, is a crowdfunding platform, but the SEC calls it a Ponzi scheme, as it promises a 50-percent return on investment in just 15 days.
It asks for a regular investment of P1,000 per individual, and its special program promises earnings of seven times in 90 days plus other incentives. Payment is coursed through GCash to a certain Jonathan del Rosario.
SEC said Axiecrowd has no primary registration and is not authorized to solicit investment from the public. Its scheme, meanwhile, “is within the context of a Ponzi scheme where the main source of income that shall in turn be distributed among the investors primarily comes from the investment of the incoming investors,” the SEC said.
The agency said the said schemes involve the sale of securities to the public. “The Securities Regulation Code [SRC] requires that these securities are registered and that the concerned corporation and its agents have the appropriate registration and license to sell such securities to the public.”
The SEC warned that those who act as salesmen, brokers, dealers or agents for the company in selling or convincing people to invest in the investment scheme, including solicitations and recruitment through the internet, may be prosecuted and held criminally liable under the SRC. They can be penalized with a maximum fine of P5 million or penalty of 21 years of imprisonment or both.