SEC warns public vs investing in The Tipsy Tavern

It said the company, operated by its representative Danielle Lance Alarcon, is actively selling investment contracts through the Wisteria Lane/Wisteria Lane Suites’ pages on Facebook.

The SEC said investors were told they could earn profits of P25,000 up to P50,000 per month on a P500,000 investment or up to 120 percent per year. Investors will also get discounts when dining at The Tipsy Tavern and also earn another 2.5-percent commission for investor referrals.

It said The Tipsy Tavern was not a registered corporation and also lacks the necessary license to solicit investments.

Ponzi scheme

“The scheme employed by The Tipsy Tavern has the characteristics of a ‘Ponzi scheme’ where money from new investors are used in paying ‘fake profits’ to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the SEC said.

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“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme,’ which is fraudulent and unsustainable, is not a registrable security. The Commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme,” it added. INQ