SEC eager to take down EmGoldex Group
For growing investment scam
The Securities and Exchange Commission (SEC) grew more agitated against the EmGoldex group for having been able to grow its investment scam operations despite so many warnings, leaving the agency with no choice but to pursue legal action so it could take down the company.
SEC in a statement said it has issued a Cease and Desist Order (CDO) and other two cases against EmGoldex, Global Intergold (GIG), and Prosperous Infinite Philippines Holdings, Corp. (PIPHC) before the Department of Justice for staging an investment scam that has been victimizing a lot of people both here and abroad.
According to the SEC, these entities violated the Securities and Regulation Code (SRC) for selling or offering for sale or distribution unregistered securities to the public and without a license.
Originally, it was only EmGoldex that was involved in the scam but in response to SEC’s advisories warning investors against it, the company renamed itself to GIG. PIPHC was then incorporated sometime in August, 2015 to aid and assist GIG investors who were unable to obtain a return on their investment.
“With the Aquino administration’s focus on anti-corruption initiatives, the SEC challenges the individual suspects namely Kevin Miranda, Ryan Manuit, Charles Juiz Padilla, Rabel Ymas, John Rafael Calicdan, and Paul Alviar to face the public and take accountability for their actions,” the Commission said in a statement.
With the help of other government agencies including the Philippine National Police (PNP) and National Bureau of Investigation, the SEC was able to gather stronger evidence against the company.
In its overall findings, SEC said EmGoldex has recruited at least 95 investors and an estimated 2.72 million additional in cash from its investors.
SEC’s Enforcement and Investor Protection Department (EIPD) assistant director Lalaine Monserate said EmGoldex, GIG, and PIPHC operate a classic Ponzi scheme of getting cash investments and giving high return payouts thru the recruitment of people.
“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,” Monserate said.
Citing international media reports, SEC said EmGoldex is also banned in other countries.
The selling and marketing of unregistered securities by EmGoldex, GIG, and PIPHC are largely done online.
SEC Chairperson Teresita J. Herbosa said the agency will do its best to protect Filipino investors, including Overseas Filipino Workers (OFWs) that fall victim to these investments scams.
She also warned the public regarding the EmGoldex Group event at the SMX Convention Center held over the weekend.
Meanwhile, the real Global Intergold, which apparently is a fully incorporated company based in Zurich, Switzerland, also came out with a statement, denying any relation with EmGoldex and its scam.(MBM)