The Securities and Exchange Commission has filed criminal charges before the Department of Justice against those behind another Ponzi scheme allegedly being peddled by incorporators of Prosperous Infinite Philippine Holdings Corp. under the names EmGoldex Philippines and Global Intergold.
The two groups were reported to sell and distribute unregistered securities to the public without a license.
Named respondents in the complaint for violation of Section 8 and 28 of the Securities Regulation Code were Kevin Miranda, Ryan Manuit, Charles Juiz Padilla, Rabel Ymas, John Rafael Calicdan, Paul Alviar.
If found guilty of violating the said SRC provisions, the respondents may be fined more than P5 million or imprisonment of seven to 21 years, or both.
The regulatory body stated that through the assistance of the Department of Interior and Local Government, Philippine National Police, National Bureau of Investigation, National Intelligence Coordinating Agency, it was able to gather evidence including affidavits of two victims who are active police officials.
Based on its investigation, the said companies were able to recruit at least 95 investors.
Citing affidavits of the policemen, the SEC said that an estimated P2.7-million cash investment has already been made by them with an estimated return loss of at least P11 million.
One of the two PNP officials invested in EmGoldex in desperation after his house burned down early this year, the SEC recounted.
SEC’s Enforcement and Investor Protection Department assistant director Lalaine Monserate said the entitled operate a classic Ponzi scheme of getting cash investments and giving high return payouts through the recruitment of people.
The SEC said as more people are recruited into the scheme, it eventually reaches a point wherein it can no longer sustain its payouts, and payments will stop thereby leaving investors penniless.
The SEC earlier said Emgoldex has a program called “Pinoy-style Patak Patak,” in which an investment of P1,000 will yield P5,000 to P10,000, while a placement of P35,000 will yield between P180,000 and P360,000 in payout.
The agency added that the selling and marketing of unregistered securities by the three firms are largely done online which may also fall under the Cybercrime Prevention Act of 2012.
The SEC filed the case after it issued a cease-and-desist order against Emgoldex, PIPHC and GIG.
Originally, the entity which employed the allegedly Ponzi scheme was EmGoldex. After the SEC issued the advisories warning investors against dealing with EmGoldex, which is not a registered corporation, it renamed itself GIG.
PIPHC was then incorporated sometime in August 2015 to aid and assist GIG investors unable to obtain a return on their investment.
EmGoldex is now banned in other countries based on international media reports.
The SEC filed the criminal charges after several months of investigation on the activities of the said groups.