THE Securities and Exchange Commission (SEC) on Wednesday, October 13, 2021, declared Repa (Repa Paluwagan) as a “Ponzi scheme” and “does not appear as a registered corporation or partnership.”
SEC issued an advisory after receiving reports and inquiries from the public asking whether Repa’s operations in Bohol, Davao, Bukidnon and Cebu are registered with the Commission and if it can solicit investments from the public.
The commission said based on reports, the persons behind the said scheme acting as “administrators” (admins) and “sellers” communicate with their victim-buyers through Facebook, Messenger or other chat groups and personal transactions and offering them “limited slots” for investment packages, where one may invest P50,000 promising a return of P20,000 or an equivalent of 40 percent interest rate of return in just a short period of two weeks.
“For the information and guidance of the public, Repa/Repa Paluwagan does not appear as a registered corporation or partnership,” the agency said.
SEC added “it is not authorized to solicit investments/placements from the public nor to issue investment contracts and other forms of securities since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 12 of the Securities Regulation Code.”
The commission said Repa’s operation is a Ponzi scheme, “which is defined as an investment fraud that involves the payment of purported returns to…