THE Securities and Exchange Commission (SEC) has warned investors against the investment solicitation programs of Wow Negosyo, U-Trade Beauty and Wellness Products Trading, U-Bet Trade International Opc, and Kinney Infotech Corp.
In three separate advisories, the regulator said none of the entities have the necessary licenses to collect investments from the public.
According to SEC, Wow Negosyo is a company of Wealth on Web Company/WOW Company/WOW Trade, for which the regulator issued an advisory in October for its investment activities.
“Wow Negosyo is not registered as a partnership nor as a corporation with the SEC. Hence, it is not authorized to solicit investments from the public as it has not secured prior registration and/or license to solicit investments from the commission as prescribed under Section 8 of the Securities Regulation Code (SRC),” the commission said.
The regulator said it received inquiries on Wow Negosyo’s newly approved “complan” under Wealth on Web Company/WOW Company/WOW Trade.
“The public is advised not to invest or stop investing in any investment scheme being offered by Wow Negosyo and exercise extreme caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of Wow Negosyo,” SEC said.
At the same time, the commission said a certain Phoebe Evangelista Gracilla heads both U-Trade Beauty and Wellness and U Bet Trading International (U-Trade).
It said U-Trade has several investment plans, including a scheme that promises investors passive income worth 500% of their investment within a 25-day “lock-in” period and other referral commissions.
U-Trade Beauty and Wellness Products is registered with Department of Trade and Industry, while U-Trade is registered with SEC. However, neither is licensed to solicit investments from the public.
SEC added that both the Gracilla-led entities are also not registered as virtual asset service providers (VASPs) with the Bangko Sentral ng Pilipinas. Both also lack the certificates of authority as a money service business as required under the guidelines for VASPs.
Kinney Infotech is luring the public to invest “with the promise of high monetary rewards or profits.” It is offering a “project plan” from basic package of P5,000 with a guaranteed return of 18,600, while a “supreme package” of P40 million with P93,6000.
SEC said that while Kinney Infotech is registered with the commission, it is “not authorized to offer, solicit, sell, or distribute any investment/securities to the public.”
The regulator warned that those involved in the operations or those who act on behalf of U-Trade Beauty and Wellness Products, U-Trade, and Kinney Infotech may be “prosecuted or held criminally liable” under Section 28 of the SRC.
Violators may be fined with as much as P5 million and/or a penalty of 21 years behind bars, SEC said.
BusinessWorld tried to reach out to the four entities. — Keren Concepcion G. Valmonte