SEC flags illegal investment taking by Eagle’s One
The Securities and Exchange Commission (SEC) has warned the public against investing in the offerings of Eagle’s One Marketing Corp., which was allegedly soliciting funds without authorization from regulators.
In an advisory, the corporate watchdog said it received reports that Eagle’s One Marketing was enticing the public to invest in exchange for promises of high returns through its social media accounts and website.
According to the SEC, prospective members were first encouraged to buy health and wellness products and participate in a referral-based income venture before gaining access to the investment programs.
The regulator said the company was offering lock-in investment plans with three-month and six-month compounding periods, promising guaranteed monthly returns of 93 percent.
Under the scheme, an investment of P1,500 supposedly grows to P3,250 after three months and further to P7,240 after six months. Investors putting in P1 million were allegedly promised returns of as much as P2.2 million after three months and P4.83 million after six months.
The SEC added that Eagle’s One Marketing had also been promoting what it called the “Eagle’s One Pool Funding Plan” during meetings with members.
According to the commission, the arrangement constitutes an “Investment Contract,” which is considered a security under the Securities Regulation Code (SRC).
As such, securities offered to the public must first be registered with the SEC, while persons selling or offering these investments must possess the necessary registration or license under Sections 8 and 28 of the SRC.
While Eagle’s One Marketing is registered with the SEC, the commission emphasized that such registration does not authorize the company to solicit investments or accept funds from the public without obtaining a secondary license.
The SEC likewise said that company owner and CEO Jessie Relox Royo was not registered as an associated person, compliance officer, salesman, certified investment solicitor or authorized securities professional.
The regulator also reminded the public that sales people, promoters, recruiters, influencers, endorsers and other individuals involved in soliciting investments for the scheme, including those operating online, may face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC.
Violators may face fines of up to P5 million, imprisonment of up to 21 years, or both, the SEC said.
The commission urged the public to exercise caution and report any information regarding the entity’s activities to its Enforcement and Investor Protection Department.
