SEC warns of more entities with characteristics of Ponzi scheme

THE Securities and Exchange Commission (SEC) flagged three entities for soliciting investments from the public without the necessary registration.

In three separate advisories, the corporate regulator said that 888 Partners Corp. Budgetarian Online Shop, Integrated Digital Success, and Hailey & Hollyn Spa are unauthorized to solicit investments from the public.

According to the SEC, 888 Partners Corp. Budgetarian Online Shop claims to be the largest e-commerce intermediary in the Philippines and that its main partner sellers are from Amazon, Lazada, and Shopee.

888 Partners recruits online part-timers to purchase store products from the e-commerce platforms, supposedly helping merchants improve their so-called store ranking and translating to more opportunities and customers. 

The entity offers investments at a minimum of P500 and promises investors 5% earnings from direct referral and a P500 minimum daily salary. The corporate regulator flagged the entity, saying its investment plan “has the characteristics of a Ponzi scheme” where money from new investors is used in paying fake profits to prior investors.

“Its merchants pay a commission for each order, after that, the platform will charge a 10% service fee and the remaining commission will be returned to members. More members will get more benefits from the platform,” it added.

For Integrated Digital Success, the SEC said the entity allegedly entices the public to invest online in two programs called “starter” and “elite.”

The starter plan promises a 20% guaranteed profit after seven days with an investment ranging from P500 to P200,000 while the elite plan assures a 50% guaranteed profit after 15 days from a P1,000 to P500,000 investment.

The entity claims that the investment is managed by professional traders and asset managers. It was flagged after showing characteristics of a Ponzi scheme.

“Integrated Digital Success likewise offers an affiliate bonus and leadership bonus equivalent to a total of 10% of the investment received by the entity from the referrals made by its members,” the SEC said.

Meanwhile, the SEC said Hailey & Hollyn Spa is soliciting investments for a minimum of P50,000, which would be used for branch expansion.   

It added that the entity is promising a guaranteed profit of 5% to 10% monthly interest and a return on investment in 12 months.

The SEC said the entity is not registered with the commission as a corporation, one-person corporation, or a partnership “and has not been issued by the commission any license or permit to sell or offer securities to the public or to conduct any activities regulated by the commission.” — Revin Mikhael D. Ochave