The Securities and Exchange Commission (SEC) has revoked the registration of Seek Explore Sports Association Inc. for selling unregistered investment products without a license.
The SEC said the group solicited investments ranging from P500 to P140,000 while promising high returns in a short period, a setup the agency said showed signs of a Ponzi scheme. Returns to early investors were likely paid using funds from new investors, not from actual business profits.
Seek Explore denied the allegations, but the SEC ruled that its offerings qualified as investment contracts and misled the public into believing the group was authorized to sell securities.
The SEC also fined the association P1 million for offering securities without prior registration and approval.
