By Eileen Mencias
The Securities and Exchange Commission (SEC) has issued a warning to the public against investing in six ponzi schemes operating without licenses.
The companies, namely E-ton Trading/Eton Phil Trading/E-ton Trading Profit Sharing, Zydex Trading, Moneyfescent Global Ventures OPC, Cash Table Solution, Mega Ultra Cash Trading, and JRC Gold Trading, were found to be soliciting investments from the public without proper authorization.
E-Ton Trading, for instance, promises to share its profits from a frozen goods business with investors in Facebook groups, offering returns of 20-50 percent per month plus a rebate bonus of five percent for new investments.
However, the company is not registered with the SEC as a corporation or a partnership.
Meanwhile, Zydex Trading, run by the same group behind Sophia Francisco Holding OPC/Financial Consultancy Services Sophia Francisco and Cryptogix, offers a 40 percent return on investments over a 15-day period, which can go as high as 90 percent over a 30-day period, plus bonuses for new recruits.
Moneyfescent Global Ventures OPC, Cash Table Online Solution, Mega Ultra Cash Trading, and JRC Gold Trading also use social media to recruit investors, promising high returns without a clear business plan.
The SEC has classified these companies as Ponzi schemes or pyramiding scams that rely on new recruits to fund returns for earlier investors.
It has advised the public to exercise caution and conduct due diligence before investing in any company, especially those that promise unusually high returns.
The public is also reminded to transact only with licensed entities and to report any suspicious investment schemes to the SEC.