SEC Warns Public Against Dragonflytech’s ‘Ponzi Scheme’
Dragonflytech entices the public to invest online by paying an amount, ranging from ₱500.00 to ₱100,000.00, in exchange for products.
The Securities and Exchange Commission (SEC) issued an advisory against Dragonfly Philippines Inc, known in social media as Dragonflytech, stating that its products are “in reality an investment scheme.”
In a statement, the Commission said that Dragonflytech entices the public to invest online or through the internet by paying an amount, ranging from ₱500.00 to ₱100,000.00, in exchange for products.
However, SEC considered this as a Ponzi scheme as Dragonflytech promises earnings ranging from 500% to as high as 1,000% in just 100 days when the investors will “recharge” on its “Conventional Product” investment.
While its “Balance Product” investment scheme promises earnings ranging from 1,200% to 1,800% in just 100 days.
What is the SEC Advisory vs Dragonflytech Investment Scheme?
“Please be reminded that the offering and sale of such securities in the form of investment contracts using the ‘Ponzi Scheme’ is fraudulent and unsustainable and is NOT a registrable security. The Commission will NOT ISSUE a Permit to Offer and Sell Securities to the Public to persons or entities that are engaged in this business or scheme,” the advisory reads.
A Ponzi scheme is considered a fraudulent investing scam as it promises high rates of return with little risk to its investors, it generates its income by paying its existing investors from the funds collected to its new investors.
“DRAGONFLY PHILIPPINES INC. nor DRAGONFLYTECH are not authorized to solicit investments from the public as these entities are NOT REGISTERED with the Commission and cannot therefore secure prior registration and/or license to solicit investments from the Commission as prescribed under Section 8 of the Securities Regulation Code,” SEC’s statement added.
In addition, the Commission warned all the individuals who act as salesmen, brokers, dealers or agents or claim as part of the entity that they may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (₱5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.
Moreover, other individuals who invite or recruit others in Dragonflytech’s Ponzi scheme may also incur criminal liability, or otherwise be sanctioned or penalized accordingly.
“In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by DRAGONFLY PHILIPPINES INC./ DRAGONFLYTECH as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of DRAGONFLY PHILIPPINES INC./ DRAGONFLYTECH,” the Commission concluded.
Recently, the SEC issued warnings against different entities that offered investment schemes online, through an application, or even in crypto. Check out more SEC Advisories here.
This article is published on BitPinas: SEC Warns Public Against Dragonflytech’s ‘Ponzi Scheme’
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