The Securities and Exchange Commission (SEC) on Monday made it known that online platform Kito-Kiko Variety Shop/Kito-Kiko Inc. runs an illegal investment-taking operation.
The regulator has gathered that its owners, Rexcel Rose Cernero Sison, claim to be an online general merchandising shop offering kitchenware and home plasticware products.
It also offers “pasalo slots” which are actually investment packages, promising the investing public to grow their money in schemes that return as high as 11 percent a month plus 5 percent or 8 percent in rebates.
It works on people investing P20,000 to enjoy a P25,000 monthly payout, P50,000 into a P75,000 payout, P100,000 into another P140,000 payout; P100,000 into a P150,000 May payout and for the take-all P400,000 a monthly payout of 8 percent.
The SEC said the company is not a registered corporation or partnership and neither is it authorized to solicit investment/placements from the public nor issue investment contracts and other forms of securities since it has not secured prior registration and/or license from the commission”.
“The public is again reminded that investing in such an unregulated entity lacks investor protection because it is not covered by prudential and market conduct requirements applicable to licensed and authorized operations,” the SEC said.
The agency warned the unscrupulous that stiff penalties are imposed on violations of the Securities Regulation Code, the Revised Corporation Code, the Financial Products and Services Consumer Protection Act (FCPA) and such other rules and regulations enforced by the SEC.
Those acting as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abettors and enablers of unauthorized entities like the operators of a Facebook Page or similar social media in selling or convincing people to invest in co-franchise programs, including solicitations and recruitment through the internet, may likewise be criminally prosecuted.
“The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be assessed correspondingly,” the SEC said.
