THE SECURITIES and Exchange Commission’s (SEC) Davao office issued a warning on Wednesday against foundations and other non-profit groups that were reportedly soliciting investments with guaranteed return through some form of assistance.
“It has reached our attention that some non-profit groups in Davao City have been brandishing their registration certificates and collecting money from the people with a promise of future benefits,” the SEC extension office said in a press statement.
It did not name the suspected groups but said the reports came from the local governments of Davao City and nearby towns and cities.
The scheme involves inviting people to “register” with the organization for a certain amount and a future “assistance” will be delivered.
“Non-stock, non-profit corporations, including foundations, are not allowed to solicit investments from the public… any form of investment solicitation without a secondary license from the Commission is illegal,” it said.
The SEC-Davao said it is already coordinating with local governments and other authorities “for appropriate actions” against the scheme.
It stressed that “those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes” could face a penalty of up to P5 million or 21 years in prison, or both.