SEC files criminal raps vs. investment firms at DOJ

MANILA, Nov. 6 (PNA) — The Securities and Exchange Commission (SEC) on Friday filed before the Department of Justice (DOJ) a complaint for violation of Section 8-28 of the Securities and Regulation Code against the investment company Emgoldex, which later became Global Intergold (GIG) and Prosperous Infinite Philippines Holding Corp. (PIPHC), for the alleged illegal sale of products to the public without the necessary license for unregistered products.

The complaint against the said companies stemmed after the SEC issued a “cease and desist order” against Emgoldex, GIG and PIPHC.

Investigation conducted by Director Lalaine Monserate, of the SEC Enforcement and Investor Protection Department (EIPD), showed that the respondent companies used the so-called “Ponzi scheme” through the recruitment of investors in exchange for big interest for their cash investment, the payout of which, allegedly would become bigger if more investors will be recruited.

The respondent companies allegedly were also targeting to victimize the overseas Filipino workers (OFWs) through the use of the cyberspace.

Likewise, among the victims of the respondent companies are two law enforcers, the amount of investment of which, reached to more than Php2 million after they allegedly recruited 95 investors. PNA