New year, new advisories.

In line with its goal to protect investors, the Securities and Exchange Commission (SEC) issued two advisories, one prior to and one after the start of the year, cautioning the public against entities involved in unauthorized solicitation of investments lacking the required license from the Commission. The advisories were directed towards BNY PAL (Benta Paluwagan) and One 1Key Progress Booster (OKPB), INC.

BNY PAL

According to the December 28 advisory, BNY PAL (BENTA PALUWAGAN)/BNYPAL & TRADING, under the leadership of Rohanie G. Velasco, is soliciting investments from the public through an online platform.

The firm offers investment options including paluwagan slots/cash benta slots, requiring a minimum investment of ₱20,000 and guaranteeing a minimum return of 30% within a 10-day period.

The SEC noted that although the company offers various “paluwagan” slots with different time-maturity periods, there is no clear computation on the income per investment amount.

One 1Key Progress Booster (OKPB), INC.

In its first advisory of the year, the Commission highlighted that, based on the information it has gathered, individuals or a group purporting to represent POWER APPS, affiliated with the corporate registration of ONE 1KEY PROGRESS BOOSTER (OKPB), INC., are actively encouraging the public to invest in the company.

The SEC noted that a Facebook post dated December 5, 2023, extended an invitation to the residents of Zamboanga City to join Power Apps by paying a ₱1,000 membership fee. Notably, the registration form associated with the post was linked to the name of ONE 1KEY PROGRESS BOOSTER (OKPB), INC.

Consequently, an investigation by the Zamboanga Extension Office of the Commission reveals that becoming a member involves a registration fee, and participants are then offered an investment opportunity named “QUEST,” requiring a ₱5,000 investment with a promised 50% return in 15 days.

The Commission noted that this scheme allows investors to choose varying return rates and reinvestment options. A minimum investment of ₱100,000 includes a free ADV motorcycle. Investors were informed that the operation would end by the year’s end, but their shares would be transferred to a new company for continued earnings. 

Amount Invested	Number of Days	Return of Investment	Rate of Interest
₱100,000	5	₱400,000*	300%
₱100,000	7	₱500,000*	400%
₱100,000	10	depends on the mechanics	depends on the mechanics

*Only half will be paid-out and the remaining half will be reinvested to increase the share/capital.

SEC Warning

Accordingly, the Commission pointed out that these entities are engaging in activities resembling a Ponzi scheme, which involves using new investments to pay fake profits to previous investors, leading to potential harm for later participants.

The SEC emphasizes that such schemes, offering and selling securities through fraudulent practices, are not registrable securities. Entities involved in these practices will not be granted a License to Sell Securities to the Public. Additionally, the Financial Products and Services Consumer Protection Act (FCPA) prohibits investment fraud, including Ponzi schemes, without proper licensing or permits from the SEC.

The public is strongly advised against investing or continuing to invest in the schemes promoted by BNY PAL (Benta Paluwagan)/BNYPAL & Trading and ONE 1KEY PROGRESS BOOSTER (OKPB), Inc.

Individuals involved in soliciting investments for these schemes, including online recruiters, may face criminal liability under the FCPA and the Securities Regulation Code (SRC), with potential fines and imprisonment.

The SEC also stressed the importance of verifying the registration and licenses of entities offering investment opportunities. Investors are urged to exercise caution and refrain from participating in potentially fraudulent schemes.

This article is published on BitPinas: SEC Issues 2 New Advisories Against Investment Schemes

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