The Securities and Exchange Commission on Monday warned the consuming public against dealing with Platinum Coin or Platinum Coin Pawnshop as it operates without a license and even accepts investments.
The regulator said the company operates on the basis of a certificate from the Department of Trade and Industry (DTI) under Jessieboy Momoy Decenan who solicits investments from the public and promises huge returns in just days.
Platinum Coin offers investments for a minimum P1,000 up to P650,000. Investors ostensibly earn 15 percent up to 50 percent after 30 days. They may also earn a one-time 5 percent outright commission.
If an investor applies as official team leader, that person can earn passive income of 2.5 percent a month, cash gift worth P10,000 up to P70,000 and P500 worth of mobile phone credits or load weekly. This is on top of a 20 percent annual bonus.
“Upon thorough investigation conducted by the commission, it was found that Platinum Coin is engaged in unauthorized online lending business/activities without a corresponding certificate of authority to operate as a lending company from the commission pursuant to the Lending Company Regulation Act,” the regulator said.
An investment contract, which is a form of security, exists when there is an investment or placement of money in a common enterprise with a reasonable promise of profits to be derived from the efforts of others, which is prominent in the scheme worked out by Platinum Coin.
The SEC reiterated the company is not a registered corporation or partnership and operates without the necessary license or authority to solicit, accept or take investments/placements from the public or issue investment contracts.
“The offering and sale of securities in the form of investment contracts using the Ponzi scheme, which is fraudulent and unsustainable, is not a registrable security. The SEC will not issue a license to sell securities to the public to persons or entities engaged in this business or scheme,” the regulator said.
