The Securities and Exchange Commission (SEC) identified and flagged eight firms yesterday for operating businesses while lacking required licenses and engaging in collecting investments through a Ponzi-like scheme where initial investors profit through the recruitment fees of new members.
According to SEC-Baguio City, the eight aforementioned firms are:
- House of Forex / H. Flores Business
- Consultancy Services
- Foto Trading International
- HarvestCTMall
- Crypace Limited/Crypace Financial Consultancy Services
- DNKC Corp.
- Gainz Philippines
- S&M ventures and Salon de Alexis.
According to the news by a local media outlet, H. Flores Business Consultancy Services or the House of Forex is not registered with SEC as a corporation or a partnership, thus it is unauthorized in offering unregistered securities to the public in the form of investment contract as this violates Sections 8, 26 and 28 of the SRC.
The Securities Regulatory Code (SRC) mandates that securities must undergo registration with the Securities and Exchange Commission (SEC) before it is offered and/or sold to the public. Additionally, the concerned entity should possess the appropriate registration or license to offer and/or sell such securities to the public.
