Pacquiao-endorsed group ordered to halt scheme
A financial services firm endorsed by boxing champion and former Sen. Manny Pacquiao had been ordered to stop its unlicensed investment scheme.
In a statement on Friday, the Securities and Exchange Commission (SEC) said it had issued a cease-and-desist order (CDO) against Trading Point Holdings Ltd. for soliciting investments from the public through the sale of unregistered securities.
The group, operating under XM, XM Global Limited and XM Philippines, was also told to cease its digital presence.
The XM Group was found to be selling or offering derivatives, foreign exchange shares and cryptocurrencies, among others.
It even has a so-called “Friend Referral Program,” providing bonuses and cash rewards to clients for bringing in new customers.
“The fact that XM has tapped and made available the local banks and e-wallets as its payment partners clearly shows that investors in the Philippines are primarily its target market,” the order read.
“Considering that XM was shown, by substantial evidence, to be offering/selling unregistered securities in the Philippines without the requisite license in violation of Sections 8 and 28 of the SRC (Securities Regulation Code), the issuance of a CDO is therefore warranted for the protection of the investing public, as it operates as a fraud on investors,” it added.
In a separate statement, the commission also flagged Quantum Trust, which has been preying on the investing public using the name of Finance chief Frederick Go.
Under the investment scam, the firm encourages the public to make an investment in a “state-funded project,” promising up to P180,000 gains weekly.
“Similar to previously exposed fraudulent investment scams, Quantum Trust promises unrealistically high returns with little to no risk, and employs aggressive marketing tactics, including claims of ‘limited slots’ or ‘urgent enrollment requirements’ to pressure individuals into investing immediately,” the advisory said.
The SEC urged Filipinos to remain vigilant and spot red flags, such as returns that are too good to be true, suspicious websites and pressure tactics.
