• BitPinas community highlighted red flags in Yexel Sebastian and Mikee Agustin’s investment proposal.
• Commentators on social media expressed suspicion over the guaranteed returns, emphasizing the need for transparency in investment strategies, as well as the absence of a clear explanation of how the investments would generate returns.
• The couple’s flaunting of wealth on social media, such as images of large amounts of cash, further raised concerns among observers, as such behavior is often associated with networking scams.

The BitPinas community has revealed key red flags they detected in the investment proposal put forth by famed toy collector and social media influencer Yexel Sebastian and his partner, Mikee Agustin. The duo is currently implicated in a ₱200 million fraud case and have fled to Japan as investigations continue.

Red flags of Yexel’s Investment Proposal

In a Facebook post by BitPinas, the community shared their thoughts on what parts of Yexel Sebastian’s investment proposal are investment red flags. The post highlighted Sebastian’s message, which offered a high return on investment with little to no risk. 

The community pointed out that these are common red flags for investment scams, and that potential investors should be wary of such offers.

1. Guaranteed High Investment Return

Several commentators have expressed suspicion that an offer of a ₱600,000 return on investment within a year, with the investor doing nothing, is too good to be true.

“If it’s too good to be true, it’s not true,” a commenter wrote. 

Someone pointed out that Sebastian’s offer of earning money without doing anything is a red flag. They said that even with a simple long-term investing or trading strategy, investors still need to study it before they can earn, especially if they want consistent monthly returns. 

“KUNG” 5% per month lang din HABOL nila dapat nag BINANCE nalang sila TUTAL they already “TAKE the RISK”. dami pang OPTION in terms of INVESTMENT PROGRAM, May FLEXIBLE SAVINGS pa na WALANG LOCK IN PERIOD anytime pwede ka mag OUT,” a commenter noted. 

[Translation: If they’re only aiming for a 5% per month return, they should have just gone to Binance, especially since they’re already taking the risk. There are plenty of other options in terms of investment programs, and there’s even a flexible savings option with no lock-in period, where you can cash out anytime.]

(Read more: Self-Proclaimed Crypto King Arrested in the Philippines for ₱100 Million Fraud)

Another person explained that all financial activities involve an element of risk, akin to placing bets. 

“The only reason banks can guarantee returns is because, in exchange for their strict compliance with banking rules, governments bail them out when something goes wrong. Anyone else guaranteeing returns is trying to scam you,” they added. 

2. No SEC Secondary Registration

Numerous commentators also expressed concern about the absence of proof of Securities and Exchange Commission (SEC) registration in Sebastian’s offer.

In line with financial regulations and the advice of prominent opinion leaders (KOLs), it is imperative for investors to verify the registration of their investment with the Commission. Unregistered entities often represent a high likelihood of fraudulent schemes.

Another commenter cautioned that even though some entities are registered, they may still engage in schemes that are not included in their licenses.

It can be remembered that recently, celebrity couple Mikee Quintos and Paul Salas, along with seven others, filed an estafa complaint against Cronus Holding Corporation alleging the entity with a scam worth ₱8 million. Although Cronus is a registered corporation, it is not authorized to solicit investments from the public.

(Read more: Crypto Hub Finance Operates Illegally, SEC Warns Investors of Ponzi Scheme)

3. No details how the investment works

One of the comments pointed out that the 5% per return per month within a year is already suspicious as “there is no certainty in this world, the only certainty is that “there is no certainty.”

A follower noted the redflags as, “guaranteed return on capital. No contract to review. (And) no company to do a background check on.”

“Wala daw hidden agenda pero bakit kailangan ng meeting? Hindi transparent ang strategy nila paano lumalaki ang pera, if not through product or networking. Even the stock market and crypto cannot guarantee specific returns. Mas marami pa syang sinabi to prove na “legit po kami”, very defensive line ng scammer,” another stressed. 

[Translation: They claimed there’s no hidden agenda, but why do they need a meeting? Their strategy doesn’t seem transparent when it comes to how money grows, if not through a product or networking. Even the stock market and crypto cannot guarantee specific returns. They said a lot to prove that “we’re legitimate,” a very defensive stance from a scammer.]

Another commenter highlighted that Sebastian did not disclose details on what business the ₱1 million would be used for. Additionally, he bombarded the reader with the rewards they could possibly get. 

4. Posting Stacks of Money in Social Media

Although the message did not mention it, other commenters also noted that the couple had been posting images of large amounts of cash to further promote their investment proposal and encourage others to invest as well.

“Red flag Yung nag show off ng pera sa internet. Karaniwang ng mga scammer nagpopost ng kotse at pera, galawang networking,” one noted. 

[Translation: Red flag; those who flaunt their money on the internet. Typically, scammers post pictures of cars and money, such a networking (scheme) tactic.]

The statement was seconded by another stating that even billionaires do not post and flaunt their wealth. 

As of writing, BitPinas scrolled down to Yexel Sebastian’s Facebook pages (Yexel Sebastian, and Yexel) and have not found any post with money in them as early as November 2022 and January 2022, respectively. On the other hand, Mikee Agustin’s page and account have been deactivated. However, the said photos of stacks of money have been featured during the show “Raffy Tulfo in Action”.

Scam Allegation

Recently, the couple are accused of defrauding around ₱200 million, primarily from Overseas Filipino Workers (OFWs). Alleged victims claim they were lured into investing substantial sums with the promise of 3%-5% monthly returns. 

Victims sought assistance on “Raffy Tulfo in Action,” and during a phone call, Yexel claimed to be an investor and shifted blame. Their abrupt departure was noted by the Bureau of Immigration (BI), which cannot hold them without a court order as no cases were filed.

The couple left for Japan during the investigation, with no legal actions filed against them at that time. 

This article is published on BitPinas: Red Flags of Yexel Sebastian’s Investment Proposal

Disclaimer:

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• Source: https://bitpinas.com/feature/yexel-sebastian-red-flags/