SEC warns investors vs Gainexpress
The Securities and Exchange Commission (SEC) has warned investors against transacting with yet another company that is supposedly engaged in an unauthorized investment scheme.
In an advisory on Tuesday, the corporate watchdog said Gainexpress was “actively soliciting investments” from the public via its social media page, promising “exorbitant” returns.
Under its scheme, Gainexpress requires a minimum investment of P500 to P2,000 depending on the chosen plan. It promises returns of up to 270 percent within 24 days.
According to the SEC, this qualified as an investment contract and, therefore, must be registered with the commission.
However, the regulator pointed out Gainexpress was not registered as a corporation. Also, it had not been issued any secondary license to solicit investments from the public. Thus, it is violating the Securities Regulation Code.
The SEC added that in allegedly offering this scheme, Gainexpress “exposes the investing public to potential financial harm.”
“Moreover, the investment scheme of Gainexpress bears the characteristics of a Ponzi scheme, wherein funds collected from new investors are used to pay supposed ‘profits’ to earlier investors,” the SEC said in its advisory.
Under the law, those found offering investment contracts without the proper license may be fined up to P5 million. They also face up to 21 years imprisonment or are liable to both penalties.
The SEC warned against transacting with Gainexpress, which is supposedly under the control of Geronimo Servande, or any other person acting on their behalf.
