The Securities and Exchange Commission on Friday warned the public against investing in Shopro International and Enjoy PH over their alleged unauthorized solicitation of investments.
It said in an advisory posted on its website Shopro and its representatives were luring the public to invest their hard-earned money in the company, which is “not engaged in any legitimate business that would produce legitimate income.”
The SEC said that based on its initial inquiry, Shopro promises investors a minimum 3-percent daily profit for a minimum investment of P1,100. This means an investment of P1,100 would give an investor a total amount of P1,980.
Aside from 3-percent daily profit, Shopro also promises investors an additional 10-percent direct referral business and quintuple bonus.
The SEC said Shopro is not registered with the commission and was noted issued any license to sell investment contracts to the public.
“In view of the foregoing, it appears that Shopro International is engaged in offering and issuance of unregistered securities in a fraudulent scheme in violation of Sections 8 and 26 of the Securities Regulation Code,” the SEC in an advisory.
Meanwhile, the SEC said it also received information that Enjoy PH lures the public to invest in its marketing scheme through social media platform.
Based on its company Facebook account, SEC said Enjoy PH urges investors to subscribe in one of seven VIP levels with subscription fee ranging from $100 to $10,000.
An investor can reportedly earn by completing the assigned daily task and by referring a friend.
The SEC said this scheme, called tasking and recharging scam, has the characteristics of a Ponzi scheme where the funds of new investors are used in paying “fake profits” to prior investors and is designed to mainly to favor its top recruiters.
The SEC said this scheme is “detrimental to subsequent members in case of scarcity of new investors.”