The Securities and Exchange Commission (SEC) has issued an advisory alerting the public about two unauthorized investment entities.
First, the agency identified Empire X Capital, led by Xavier Montes. The group promotes investment plans ranging from ₱300 to ₱5,000, claiming guaranteed returns of 25 percent in six days and 70 percent in 18 days. It also offers referral commissions based on investments made by newly recruited members. The SEC stated that this setup fits the definition of a Ponzi scheme, where returns to early investors are paid using funds from new participants. Such schemes are unsustainable and carry high risks, as they eventually collapse and cause losses to later investors. The SEC clarified that Empire X Capital holds no license to offer or sell securities to the public, and its operations violate the Financial Products and Services Consumer Protection Act.
Additionally, the SEC warned against CLI Finance Incorporation, a website using a name similar to the registered and legitimate lending firm CLI Finance Inc. The authorized company confirmed that it has no connection to the website clifinanceincorporation.com/cli-finance-incorporations. The fake platform improperly uses the company’s name and corporate details without permission. The legitimate firm does not operate online lending services or applications, and it is not listed as an authorized platform by the SEC.
The SEC reminded the public to verify the registration and authorization of any investment or financial service before participating, to avoid falling victim to investment fraud.
