Iloilo salon not allowed to sell investments
The Securities and Exchange Commission (SEC) warned the public against an Iloilo-based salon chain that was found to be selling investments supposedly for its expansion.
In an advisory, the corporate watchdog said Salon de Pamplona is not authorized to sell or offer securities to the public in the Philippines, pursuant to Republic Act No. 8799, or The Securities Regulation Code. According to the SEC, Salon de Pamplona has nine branches and is operated by Ramillo Pamplona Pumbaya.
Despite lacking the necessary licenses to do so, the group was found to be offering investment slots worth P5,000 to P300,000. Investors were promised a return of 15 percent after 30 days.
“Salon de Pamplona is not registered with the SEC either as a corporation or partnership. Accordingly, it is not authorized to solicit investments from the public since it has not secured the prior registration or license from the commission,” the SEC said. It added the scheme has the “characteristics” of a Ponzi scam, an activity that masquerades as a legitimate business that pays “profits” by using money collected from earlier investors. The SEC noted that Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act, also prohibits investment fraud, which is defined under the law as any form of deceptive solicitation of investments from the public, including Ponzi schemes.
The corporate regulator had earlier issued an advisory against Salon de Alexis, which it said was also Iloilo-based and owned and operated by a certain Ronald Pamplona Menor, for employing a similar investment scheme. INQ
