SEC warns public against Maharlika Play offer
The Securities and Exchange Commission (SEC) has warned the public against investing in Maharlika Play, an unregistered platform offering returns of up to 333 percent in 45 days through a scheme supposedly financing high-stakes gaming.
In an advisory, the regulator said Maharlika Play had neither SEC registration as a corporation, partnership or other juridical entity nor the required registration or secondary license to solicit investments.
The platform recruits participants as “partners,” asking them to contribute money in exchange for purported passive income and fixed profits.
Each program sets minimum and maximum contributions, with profits supposedly payable after a specified holding period.
Maharlika Play also claims it will use funds generated by its operations to expand into digital and physical businesses, eventually establishing and owning a casino, according to the SEC.
The regulator said the entity was reportedly linked to a certain Bryan Sanchez, who was alleged to be involved in its operation or promotion. Its activities were being advertised through a website, social media and other online channels.
The SEC said the scheme involves investment contracts, which are securities under Republic Act No. 8799, or the Securities Regulation Code.
Section 8 of the law requires an approved registration statement before securities can be offered or sold in the Philippines.
Section 28 also requires registration or licensing for persons engaged in securities trading or investment solicitation in the capacities covered by the law.
“The public is strongly advised not to invest or stop investing in Maharlika Play or in any investment scheme involving the offer and/or sale of securities that is not duly registered with and authorized by the commission,” the SEC said.
It said deceptive solicitations or promises of unreasonable returns without regulatory authority may also constitute investment fraud under Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act.
Applicable penalties include fines of P50,000 to P5 million, imprisonment of seven to 21 years, or both, upon conviction.
The SEC also warned that agents, promoters, recruiters, influencers, endorsers and others enabling the scheme could face criminal liability.
