A CEBU City-based firm offering beauty, cosmetic, home and personal care has been flagged by the Securities and Exchange Commission (SEC) as an investment scam after it was found to be soliciting investments from the public even without the necessary license and permit.
SCET Colleens Corporation with office address at Unit 2004 Grand Residences, Apitong Street, Cebu City has claimed to have a secondary license, but upon investigation by the SEC Enforcement and Investor Protection Department (EIPD), the document they were using was fake, SEC Cebu extension office officer-in-charge lawyer Alma Marie Estrada-Dalena said quoting the EIPD report.
SCET Colleens offers a number of investment packages and promos ranging from P3,800 to P1.08 million, promising lucrative passive returns of five to eight percent return of investment per month and other bonuses with little or no risk.
“The public is reminded that any offer or promise of ridiculous rates of return will little or no risk is an indication of a possible Ponzi scheme,” the SEC official added.
A Ponzi scheme is when early investors are paid of their investments from the investments of new investors and not out of the companies’ profits similar to the ill-fated Kapa.
Dalena said these entities are likely to close or shut down once they cannot gather enough investments to fund their schemes due to lack of new investors.
The SEC conducted the investigation following reports and inquiries of the public on the legal operations…