THE Securities and Exchange Commission (SEC) has flagged three unlicensed entities for offering unauthorized investments to the public.
In separate advisories, the regulator warned against Cloud Network/Cloud Network Marketing or www.cloudnetworkmarketing.com, Lendvest International, and Earn Cash Quarantine Lending Consultancy Services.
Cloud Network’s investment program promises investors a five percent daily payout for 44 days, on top of an earning opportunity through direct referrals.
It is not registered as a corporation or as a partnership and lacks the required license to collect investments from the public.
The SEC said the scheme of Cloud Network “shows indication of a possible Ponzi scheme, where monies from new investors are used in paying ‘fake profits’ to prior investors.”
Lendvest is also not registered with the SEC and does not have the secondary license to offer, collect, and distribute investments or securities to the investing public.
“Based on the information gathered by the commission, Lendvest entices the public to invest by offering investment packages from P1,000 up to P1,000,000 with a return of up to P23,298,090 for one year,” the regulator said in an advisory dated July 6.
Lendvest has a variety of investment packages, with programs ranging from a month’s worth of investments, three months, six months, and a year.
Meanwhile, Earn Cash is said to be headed by a certain John Mitchell Mapaye Alcantara. BusinessWorld sought comment from Mr. Alcantara via Facebook Messenger, but he has yet to respond as of writing.
The public may invest through Earn Cash for as low as P2,000. Its investment plans guarantee returns of 40% in 12 days, 50% in 25 days, 100% in 30 days, and 300% in 75 days. Investors may also earn via direct and indirect referrals.
However, the SEC flagged Earn Cash for offering investment programs without being registered with the commission. It is also not authorized to collect investments from the public as it lacks the necessary license to do so.
The corporate regulator is advising the public to stop investing in Cloud Network, Lendvest, and Earn Cash. It is also calling on those who can provide information on the three entities’ operations to reach out to the SEC.
Meanwhile, the commission is warning those who act as salesmen, brokers, or those who represent these entities by offering their programs to the investing public that they may be prosecuted and held criminally liable under the Securities Regulation Code. They may be penalized with a fee of up to P5 million and/or face 21 years of imprisonment. — Keren Concepcion G. Valmonte