DAVAO CITY—The Securities and Exchange Commission (SEC) has advised against dealing with another investment scheme asking for as much as P500,000 for a profit-sharing program but which must be locked in for the next six months prior to claiming a promised high investment return.
The SEC Enforcement and Investor Protection Department (EIPD) issued the advisory this week against Davao Prime Summit Frozen Products Trading (DPSFPT). According to the regulator, DPSFPT operates in the Davao Region, Soccssksargen, Cotabato City and the Maguindanao provinces.
The SEC said DPSFPT was headed by a certain Tom Caño Casas, the company’s purported chief operation officer and founder. It said the company was “enticing the public through social media.”
“As posted online, one can invest by contacting them first at https://www.facebook.com/primesummitfrozen and by attending one of their scheduled orientation seminars at their office, then one can avail of their investment plans,” the SEC said.
The regulator said the company was offering investments to the public through its “profit share program” with a minimal amount of P10,000 and up to P500,000. According to the SEC, DPSFPT promises that investors may earn up to 120 percent within the lock-in period of 6 months or 20 percent for every month.
“The scheme employed by Davao Prime Summit Frozen Products Trading has the characteristics of a Ponzi scheme where money from new investors is 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,” it said.
The SEC said the offering and selling of securities in the form of investment contracts using the Ponzi scheme “is not a registrable security.” It added that the Ponzi scheme was fraudulent and unsustainable.
“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,” the SEC said.
It said it would remind the public that those who act as salesmen, brokers, dealers or agents, representatives, operators, promoters, uplines, recruiters, influencers, endorsers and enablers of the DPSFPT may be held criminally liable.
Violators may be fined with P5 million or imprisoned for 21 years or both, the SEC added.
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