THE Securities and Exchange Commission (SEC) advised the public not to invest in an entity called Movie Daddy as it is not a registered corporation or partnership.
According to the advisory on Wednesday, Movie Daddy claims to be a novel platform that gives extra income to those who will watch and rate movie trailers on its application.
The entity also claims that it “aims to be one of the most trusted recommendation resources for quality entertainment.”
Movie Daddy collects profiles of movie fans and uses the data to run trailer campaigns for distributors, studios, and video-on-demand services. Fans or viewers of its trailer are promised cash rewards through a model called Revshare whenever they engage with its platform.
On its website, Movie Daddy entices the public to invest in any of its subscription plans from $40 to $2,990.
Subscribers are then promised earnings of $48 up to $3,600, depending on the plan that they availed. Investors can also earn a referral bonus of 5% for every upgrade.
The SEC said that the scheme employed by Movie Daddy shows an indication of a “Ponzi Scheme” where investments from new investors are used in paying “fake profits” to prior investors.
“[It] 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.
According to the SEC, the scheme described is fraudulent, unsustainable, and cannot be registrable security with the regulator.
“In view thereof, the public is hereby advised not to invest or to stop investing in the investment scheme being offered by Movie Daddy, and its representatives,” the regulator advised. — Justine Irish D. Tabile