Watchdog warns vs investment, lending fraud
The Securities and Exchange Commission (SEC) has intensified its crackdown on illegal investment and lending activities, warning the public against entities and individuals posing as legitimate firms to defraud investors and borrowers.
In an advisory, the regulator cautioned the public against individuals or groups soliciting investments for “Xelora,” which the SEC said is neither registered as a corporation nor as a partnership.
Because of this, the entity also lacks the secondary license required to offer, sell or distribute securities to the public, the Commission said.
The SEC also flagged scammers posing as representatives of Aurora Securities Inc., allegedly using the company’s name, logo and identities of its personnel to solicit investments online.
According to the advisory, the fraudsters send deceptive messages through online messaging applications. They claim that recipients supposedly maintain investment portfolios with the company and need to settle tax obligations before they can withdraw their funds.
The regulator said the scheme resembles an “advance-fee scam,” wherein victims are persuaded to pay an upfront amount in exchange for a promised larger sum.
“Upon payment, the scammer will either ask the victim to pay additional fees or simply disappear,” the SEC said.
Separate advisories were likewise issued against entities allegedly using the name of Value Quest Finance Corp. without authorization to conduct online lending activities.
The Commission also warned against individuals or groups illegally using the identity and registration details of Glimms Credit Inc. to operate unauthorized lending businesses.
The SEC said these entities use the website “glimmscreditincorporation.com” and social media platforms to advertise loan offers to the public.
The regulator reiterated that it remains committed to curbing illegal investment-taking activities through enforcement actions, advisories and financial literacy campaigns.
The SEC urged the public to remain vigilant and verify first whether companies offering investments or loans are properly registered and licensed before engaging in any transaction.
More information may be accessed through the SEC website.
