The Securities and Exchange Commission (SEC) issued warning about unauthorized groups masking as foreign exchange traders, attempting to solicit investments from people without a license.
The SEC has identified Juan Savings and 1 Heal 1 World Trading as groups that offer illegitimate investment opportunities. The regulator agency published the information on its website.
The SEC investigated these entities. According to its report, the companies are luring the public to invest in exchange for profits. As this activity is equivalent to selling investment contracts, it requires a secondary license from the SEC. However, the companies don’t own that license.
According to the SEC, 1 Heal 1 World Trading falsely claims engagement in foreign exchange trading. The platform solicits P1,000-P50,000 as capital in exchange for promising a 170% return on investment in 25 days. It gives this payout in four cycles with a 5% deduction.
Juan Savings also claims to be dealing with forex trading. It invites investors through a Facebook page. This platform promises a 7% interest rate and locks in investment for ten months. It pays investors their profits every month.
While they operate as official platforms, the SEC stated that both 1 Heal 1 World Trading and Juan Savings are not registered businesses. Furthermore, they do not have the authorization to solicit investments, because they have not secured a license to sell securities.
The SEC added that it currently does not allow the registration of foreign exchange to be used as securities, because its governing rules are still suspended. But it means that people who decide to invest in these firms aren’t secure from fraud sufficiently.
The SEC plans to penalize Juan Savings and 1 Heal 1 World Trading
The Securities and Exchange Commission advised the public not to invest or to stop investing in Juan Savings and 1 Heal 1 World Trading.
Subsequently, brokers, salesmen, agents, and dealers of the two groups may be penalized for violation of the Securities Regulation Code. This entails a fine of a maximum P5 million, maximum 21 years of imprisonment, or both.
The SEC also plans to report the names of individuals involved in the schemes to the Bureau of Internal Revenue for implementation of other appropriate penalties.