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Sunday, April 21, 2024

‘Stop investing in Money Game Hub’

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The Securities and Exchange Commission (SEC) has warned the public against dealing with Money Game Hub or MGH Trading OPC as it is engaged in unauthorized investment-taking activities.

MGH Trading, a one-person corporation headed by Alexander Salvador, is a perfume-distribution company, but it entices the public to invest at least P500 in its company and promises a return of seven times or up to P3,500 in just 40 days.

Its investment packages include an amount of P500 through P50,000, but a member can earn more if he can recruit more people into the system with commission rates of between 20 percent to 50 percent. It also has a casino feature in which joining member will have a free spin in its roulette or cash payments into the company.

“The public is hereby informed that Money Game Hub is not registered as a corporation and partnership. However, MGH Trading is registered with the commission as a one-person corporation. Nonetheless, both Money Game Hub, MGH Trading are not authorized to solicit investments from the public as they did not secure prior registration and/or license to solicit investments from the commission,” the agency said.

The SEC urged the public to stop investing in MGH. The agency also said those involved in the operation of the company will be reported to the Bureau of Internal Revenue.

The agency said MGH may have a certificate of incorporation from the SEC, but the document does not constitute an authority or license for the corporation to engage in activities such as solicitation of investments, issuance of investments contracts, offering and sale of investment contracts that require a secondary license.

As MGH’s schemes involve the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities must be registered and that the corporation and its agents must have a registration and license to sell from the agency.

Those who act as salesmen, brokers, dealers or agents of MGH to invest in their investment schemes, including solicitations or recruitment through the internet may be prosecuted and held criminally liable under the SRC. They can be fined a maximum of P5 million and a maximum imprisonment of 21 years.

“Also, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly,” the SEC said.

Read full article on BusinessMirror

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