Promising Earnings of Up To 50% Per Month, SEC Flags FDMS Business

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  • The Securities and Exchange Commission (SEC) has issued a warning to the public regarding FDMS Business and Marketing Solutions Inc., which is allegedly soliciting investments without the necessary license and/or authority from the Commission.
  • The company, which operates under the name Affiliate Learning Program, is offering investment plans with promised earnings ranging from 30% to 50% per month, or up to 150%-250% in 5 months.
  • The SEC warns that FDMS Business and Marketing Solutions Inc.’s investment scheme is a Ponzi Scheme and not a registrable security, and therefore the Commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme.

The Securities and Exchange Commission (SEC) has issued a warning to the public regarding FDMS Business and Marketing Solutions Inc., which is reportedly soliciting investments without the necessary license and/or authority from the Commission. The company, which operates under the name Affiliate Learning Program, is offering investment plans through its Ride Trade Investment packages with promised earnings ranging from 30% to 50% per month, or up to 150%-250% in 5 months.

According to the SEC, the investment scheme of FDMS Business and Marketing Solutions Inc. clearly involves offering and sale of securities in the form of “investment contract” as defined under Section 3.1 of the Securities Regulation Code. As such, the SEC requires that said offer and sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public.

Records of the Commission show that FDMS Business and Marketing Solutions Inc. was registered with the Commission on March 15, 2021, but such registration merely grants juridical personality to the corporation but does not authorize it to issue, sell or offer for sale securities to the public nor undertake business activities requiring a secondary license. Furthermore, the company is not authorized to solicit investments from the public as this entity did not secure prior registration and/or license to solicit investment from the Commission as prescribed under Sections 8 and 12 of the Securities Regulation Code.

The SEC also noted that the scheme employed by FDMS Business and Marketing Solutions Inc. has the characteristics of a “Ponzi Scheme” where monies from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors.

The SEC warns the public that the offering and selling of securities in the form of investment contracts using the “Ponzi Scheme” which is fraudulent and unsustainable, is not a registrable security and the Commission will not issue a license to sell securities to the public to persons or entities that are engaged in this business or scheme.

This advisory follows previous warnings issued by the SEC regarding other illegal investment schemes, such as Lele Gold Farm, Oriental Mining, and Trading Cartel. The public is reminded to exercise caution and due diligence before investing in any scheme and to report any suspicious activities to the EIPD at epd@sec.gov.ph.

This article is published on BitPinas: Promising Earnings of Up To 50% Per Month, SEC Flags FDMS Business

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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