PH SEC Hails US SEC’s Move to Charge Forsage Scam Leaders

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In a response letter sent to BitPinas, the Securities and Exchange Commission of the Philippines (PH SEC) praises its counterpart in the United States (US SEC) after the latter filed charges against 11 members of Forsage.

“The Securities and Exchange Commission of the Philippines hails the U.S. Securities and Exchange Commission’s move to file charges against investment scam Forsage, which was found to be operating a fraudulent crypto pyramid and Ponzi scheme worldwide, including the Philippines,” the letter read.

Just yesterday, BitPinas published a report that the US SEC cited the Philippine Commission regarding the issuance of a Cease-and-Desist Order (CDO) in the country last September 27, 2020.

The Commission issued the CDO after finding out that Forsage was doing illegal solicitation of investments through a crowdfunding platform, supposedly based on Ethereum blockchain technology.

The order also noted that Forsage is not registered as a corporation or partnership with the Commission, and is not qualified to operate as a crowdfunding entity in the Philippines.

Prior to the CDO, SEC initially issued an advisory last June 30, 2020, advising the public to stop investing in any scheme offered by Forsage and other similar entities touting investment opportunities in cryptocurrencies and other digital assets not registered with the Commission.

Meanwhile, the local regulator further stands on its decision, stating the charges filed by the US Commission against Forsage affirms their enforcement actions against the fraudulent pyramid scheme.

“Considering the global reach of the investment scam, the SEC Philippines provided assistance to the U.S. Securities and Exchange Commission in the conduct of the investigation of the fraudulent investment-taking activities of Forsage by sharing information gathered by the former’s Enforcement and Investor Protection Department in the course of its own investigation,” the local Commission said.

Currently, two out of the eleven individuals that are charged, Samuel D. Ellis and Sarah L. Theissen, agreed to settle the charges and to be permanently enjoined from future violations of the charged provisions and certain other activities – Ellis agreed to pay disgorgement and civil penalties, while Theissen will be required to pay disgorgement and civil penalties as determined by the court; subject to court approval.

“The SEC Philippines reiterates its commitment to hunting down investment scams and stop their proliferation in the country, so that no Filipino will be stripped of their hard-earned money,” PH SEC concluded. 

“The Commission will likewise continue pursuing closer collaboration with other regulators to fight investment scams that have victimized Filipinos here and abroad, as it works toward the common goal of protecting the investing public.”

This article is published on BitPinas: PH SEC Hails US SEC’s Move to Charge Forsage

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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Nath Cajuday

BitPinas is the oldest blockchain and cryptocurrency news outlet that covers the Philippine blockchain and crypto scene. We are also writing general and international blockchain topics that are relevant to our audience.