THE Securities and Exchange Commission (SEC) warned the public against an investment group called Coinmax.ph, noting that it operates investment schemes without regulatory clearance.
“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Coinmax.ph and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” it said.
SEC’s investigation revealed that Coinmax.ph offers passive earnings through three kinds of investment packages. An investor could get a basic account that gives a 90% return in 15-25 days, a gold account a 150% return in 40 days, and a premium account a 150% return in 70 days.
The agency said that these investment packages are equivalent to securities sold to the public, which should be regulated by the Securities Regulation Code. It would only be legitimate if a company’s securities are registered with the SEC. The company should also have a license to sell them.
The investment schemes of Coinmax.ph, therefore, violate the Securities Regulation Code. The people behind the unregistered company — sales clerks, brokers, dealers, or agents — may face penalties including a maximum P5-million fine, 21 years of imprisonment, or both. They may also have criminal liability.
SEC advises public not to invest in Coinmax.ph
Coinmax.ph is added to the growing list of entities operating investment schemes without regulatory clearance. In Cebu, SEC reported a 400 percent increase of scam groups and fraudulent entities during the first 10 months of 2020.
“From January to October 2020, the commission identified over 200 fraudulent individuals or entities and had released advisories about the matter on their official website. There is a 400 percent increase of fraudulent entities this year as compared to 2019,” the agency said.
According to Lawyer Alma Marie Estrada-Dalena, officer-in-charge of SEC-Cebu, unscrupulous individuals took advantage of the COVID-19 pandemic to dupe investors.
“People should think twice before making any investment, especially if an entity is offering unreasonably high returns. We want to inform the investing public that the SEC registration does not authorize an entity to solicit investments. The SEC registration only grants juridical personality, but a secondary license is required if they want to engage in investment taking.” Dalena said.