SEC issues CDO vs PU Prime group
The Securities and Exchange Commission has issued a cease-and-desist order against one PU Prime investment-taking group, which was found by the corporate regulator to be offering unregistered securities such as commodity futures and cryptocurrency.
The CDO dated July 1 was slapped against Pacific Union LLC, PU Prime Philippines and PU Prime Support PH, as well as their representatives Martin David Adorable, Jerico Matela, Janelle Crystal Gayle Alipio, Janna Deloeste, Tiffany Deloeste and April Castillo.
The SEC said “the offer/sale of unregistered securities has been considered as fraudulent, which equally justifies the prompt issuance of a CDO.”
The PU Prime group was accused of doing business in the Philippines without a license, specifically trading commodity futures contracts and offering unregistered securities to the public.
PU Prime operates five trading platforms: PU Prime App, MetaTrader4, MetaTrader5, Web Trader, PU Social and PU Copy Trading.
One group of complainant said Matela had hosted a webinar and convinced them that investing with PU Prime was “legal and safe as it employs a forex robot that monitors market fluctuations and stops losses, as necessary.”
After the webinar, they said Alipio had promised them a guaranteed monthly return of 10 percent. The complainant had invested P1.25 million but ended up losing everything.
Acting on the complaint, the SEC’s enforcement and investor protection department (EIPD) subsequently investigated the group.
According to the order, PU Prime fashions itself as a global online brokerage firm specializing in foreign exchange, contract for difference (a financial derivative that allows speculation on price movements), shares, bonds, exchange-traded funds and cryptocurrency.
The EIPD found out that through its seminars, PU Prime and its agents have been actively soliciting investments ranging from $50 to as much as $10,000.
“They allow investors to speculate on the price movements of assets without actually owning them by accessing its website,” the SEC order read.
“In order to attract new investors, PU Prime offers and grants a 100-percent deposit bonus on first deposits, a strategy commonly used to entice prospective investors to participate in high-risk trading schemes.”
Section 8.1 of the Securities Regulation Code states that securities shall not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the SEC.
