SEC Halts Platinum Coin Pawnshop’s Illegal Investment Scheme

• SEC issues cease and desist order against Platinum Coin Pawnshop for running an illegal investment scheme disguised as a lending company.
• Platinum Coin enticed the public to invest, promising 15% to 50% guaranteed returns within 30 days, without proper SEC registration.
• The SEC had previously warned the public not to invest in Platinum Coin as early as February 10, 2023.

The Securities and Exchange Commission (SEC) has recently issued a cease-and-desist order against Platinum Coin Pawnshop, which was operating an illegal investment scheme disguised as a lending company.

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Cease and Desist Order Details

On April 4, the SEC ordered Platinum Coin Pawnshop to immediately halt any unlawful solicitation, offer, and/or sale of securities without the necessary license. Additionally, the company was prohibited from conducting any business involving funds in its depository banks and transferring or disposing of any related assets.

Platinum Coin was also directed to cease its internet presence relating to its investment scheme. The order encompasses the company’s operators, directors, officers, representatives, salesmen, and agents.

The Illicit Investment Scheme

Platinum Coin, based in Dipolog City, Zamboanga del Norte, claimed to offer loans to the public with a 20% interest rate based on a 60-day period. However, the SEC Enforcement and Investor Protection Department discovered that the company was actually enticing the public to invest between P1,000 and P650,000, promising guaranteed returns of 15% to 50% within 30 days. Investors were also promised an annual bonus of 20% of their investment and a 5% commission for new recruits.

The Involvement of Securities

The SEC determined that Platinum Coin’s scheme involved the sale and offer of securities in the form of investment contracts. These contracts require a person to invest money in a common enterprise and expect profits primarily from the efforts of others. The post-dated checks issued by Platinum Coin also fall under the definition of securities in the form of “evidence of indebtedness.”

Platinum Coin’s Unregistered Status

Platinum Coin is not registered with the SEC as a corporation or partnership. An entity called Platinumcoin Consumer Goods Trading under Mr. Decenan’s name is registered with the Department of Trade and Industry, but it is only authorized to conduct business activities related to dishwashing liquids.

Platinum Coin has never secured a secondary license as an issuer of securities or broker dealer, nor registered any securities for public offering under the Securities Regulation Code (SRC).

SEC’s Prior Warning and Public Advisory

The SEC had previously issued an advisory warning the public not to invest in Platinum Coin on February 10, 2023. The Commission En Banc emphasized the need to promptly restrain Platinum Coin’s fraudulent activities to protect the investing public.

This article is published on BitPinas: SEC Halts Platinum Coin Pawnshop’s Illegal Investment Scheme

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