The Philippine Securities & Exchange Commission (SEC) released a new advisory against the new investment scheme called Reposco Trading, operated by Benjamin Mari Limjap, for illegally soliciting investments from the public.
According to the SEC, Reposco Trading claims that they are using blockchain technology to offer decentralized and democratized investment plans that promise weekly dividends based on their sports arbitrage, forex, and oil options gains. The SEC also said there were news reports alleging that Limjap has defrauded numerous Filipino investors by soliciting money from them with a promise of twenty percent (20%) return of investment in a ninety (90) day period maturity.
According to the Securities Regulation Code (SRC), any institution must be registered with the Commission and must have the appropriate registration or license before selling any securities to the public.
However, Reposco Trading is not a duly registered corporation or partnership nor a crowdfunding intermediary or a funding portal based on the SEC database. Thus, Reposco Trading operates without the necessary license or authority to solicit, accept or take investments/placements from the public and this kind of action shows indication of a possible “Ponzi Scheme”, where new investors money are used to pay its promise twenty percent (20%) return of investment which only benefits the top recruiters or earlier investors.
SEC warns the public to stop investing in Reposco Trading and not entertain the offers of its representatives. Any person or entity who act as agents, brokers & salesmen of Reposco Trading may be held criminally liable under Section 28 of the Securities Regulation Code (SRC) and may get penalized up to five million pesos (Php 5,000,000) or imprisonment of twenty one (21) years or both pursuant to Section 73 of the SRC.
“Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed,” the SEC stated further.
Anyone with information about Reposco Trading operations & its agents or representatives, can send their report through email at email@example.com.
Find the SEC advisory here.
This article is published on BitPinas: PH SEC Advisory Against New Investment Scheme REPOSCO TRADING