SEC identifies more Ponzi-like scams

MANILA, Philippines — Corporate regulator Securities and Exchange Commission (SEC) continues to update its list of entities that are potentially involved in investment scams, warning the public against putting money into these companies.

The SEC issued an advisory yesterday against two more of such entities, Bny Pal or Benta Paluwagan and One 1Key Progress.

The SEC said Bny Pal offers different “paluwagan” slots and income for different time-maturity periods without computation or matrix for returns given per amount invested.

“It entices the public to invest by promising a minimum of 30 percent profit in just 10 days,” the SEC said in its latest advisory.

The second entity, One 1Key Progress Booster Inc., meanwhile, entices the public to invest in its so-called Power Apps Marketing Business by registering for a fee of P1,000.

“Once registered, a member then needs to invest P5,000 to be entitled to a 50 percent return on income in just 15 days. An investor-member may also invest P100,000 to avail of a 300 percent to 400 percent profit in just five to 10 days,” the SEC said.

“Some of these groups’ investment schemes or actions resemble a pyramid or Ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products or services, and investors are paid using the contribution of new members,” the SEC said. The SEC has been regularly warning the public against potential scammers.

It earlier scored a victory against Kapa Community Ministry International Inc. – touted as the country’s biggest investment scammer so far – with the arrest and prosecution of some of its leaders.

An SEC case buildup led to conviction of its leaders for syndicated estafa, a crime punishable by life imprisonment.

A similar ruling was handed out by the Supreme Court in the case against so-called pyramid scam queen Rosario Baladjay, who was also convicted of syndicated estafa after victims filed cases against her for her Multitel scam.

The SEC has secured the conviction of at least 33 individuals involved in 22 cases of scams.

According to SEC records as of September 2023, 355 individuals are being actively prosecuted in various courts covering 145 cases for