The Securities and Exchange Commission (SEC) on Tuesday has warned the public against investing in Jams Mart, Solmax Global Limited, Igniter 100, and BitAccelerate, which the agency said were disguised as cryptocurrency trading and franchising.
The groups have not secured the necessary licenses to offer securities for sale within the Philippines, the agency said in its separate public advisories against the said firms.
The SEC also revoked the certificate of incorporation of Chiyuto Creative Wealth Documentation Facilitation Services for operating an unauthorized investment program resembling a Ponzi scheme.
In its order of revocation issued on February 15, the SEC Enforcement and Investor Protection Department also imposed penalties totaling P9 million against Chiyuto and its single stockholder Patrocenio Calvez Chiyuto Jr. for administrative violations ofthe Securities Regulation Code.
Chiyuto was permanently disqualified from being a director of other corporations.
The EIPD issued the order after finding that Chiyuto has been offering and selling securities to the public through a double-your-money roulette game without the necessary license.
Jams Mart, meanwhile, is not registered with the SEC either as a corporation or as a partnership.
The group, which is headed by a certain Niño Luis A. Jamili, has been offering investments to the public through its franchise investment program, where investors are promised a return of up to 300 percent within one year.
Under the scheme, an investor may co-own a Jams Mart outlet with an investment of at least P75,000, in exchange for 5 percent of shares. Every 5-percent share allocation guarantees a monthly 7-percent interest or P5,250, monthly sale shares of P4,750 and a fixed dividend of P4,750, for a total annual return of P225,000. Availing of the 100-percent franchising agreement for P1.5 million would entitle an investor to a 10-percent monthly interest and a 15-percent share in its monthly earnings, totaling a return of 300 percent for an entire year.
Solmax Global and Igniter 100, meanwhile, have been enticing the public to invest in its initial coin offering (ICO) through its Filipino Independent Marketing Partners.
Solmax and Igniter claim that they are based in London and are operated by Florian Krueger, Serge Meulenbelt, Abdul Rehman Sandhu, Steven Lubka, Thelma Dhlovu, Aarron Bates and Asim Mirza.
The SEC identified its local partners as Anna Lisa, Diane Sawali, Roberto Dulin, Aizel Alana, Ehmerson Ilagan, Jennifer Plata, Meri Reyes, Elphed Reyes Stephen Carreon, Renmar Sombilon, Jemar Tarsita, Melchor Parojinog, Reynald Atillo, Fatima Atillo, Marilou Van Meeteren, Michelle Canay, Robinson Diaz, Ferzael Ebueng, Susan Borja Ramos and Jimbert Aton.
The groups’ ICO involves their cryptocurrency called “Equity Token” or “i100” valued at 0.38 pounds per token/share as of November 2020, with expectations that the price would increase once listed in the open market this year.
The investment packages range from £25 to £5,000, with a total guaranteed passive income of 1 percent per day for a total of 200 percent for 200 days. The investor could increase their returns to 2 percent per day for 100 days if they could recruit at least three more into the scheme.
The investor has the option to lock in their investment for a year in exchange for a bigger income, depending on the corresponding number of Equity Tokens or i100 shares derived from their chosen package. Based on a projected value of £6 to £8 per share once the tokens are listed, investing in Solmax and Igniter could allegedly generate returns of 1,500 percent.
The two firms also provide other income opportunities for investors, such as ranking bonuses, referral commissions, binary bonuses, matching bonuses, global pool bonuses, as well as car, travel, gadget incentives, among others.
Ponzi scheme
The SEC warned that Solmax and Igniter, despite claiming legitimacy abroad, may be operating a Ponzi scheme, wherein early-stage investors are likely to be paid out from investments of new investors instead of from the sale of legitimate products or services.
Both entities have not secured a license from the SEC to conduct its ICO within the Philippines. They are also not included among the registered banks, exchanges, or companies engaged in digital assets with the Bangko Sentral ng Pilipinas.
BitAccelerate, which also operates under the names itaccelerateproject.com, BA, and BitAccelerator, claims to be operating a crowdfunding international platform that provides investors both long-term active and passive income.
Investors could allegedly generate income from BitAccelerate’s compensation plans, depending on the number of referrals and/or membership fees they have gathered. The investor will then be asked to download the Telegram app, where they could input their investments through the BitAccelerate Bot.
Investors could generate up to 350 percent maximum passive income from their investments, or a daily profit of about 2 percent to 8 percent.
BitAccelerate’s so-called smart contract partakes of the nature of securities through an investment contract, where investors need not exert any effort other than to invest or place money for them to earn a profit, according to the SEC.
“Cryptocurrencies are very volatile and involve a higher degree of risk, making any promise of lucrative returns truly ambiguous,” the SEC said.
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