SEC Cautions Public Not to Invest in HeroMining Scam

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With the increasing number of fraudulent schemes in the country, the Securities and Exchange Commission (SEC) has warned the public against transacting with individuals or groups of persons representing HEROMINING/HERO MINING/HERO MINING INTERNATIONAL GROUP.  

In a published advisory, the Commission stated that the entity and the people representing it are enticing the public, through social media platforms or through their own independent websites, to invest without the necessary license to do so.

According to their website, investors must register first, then they can choose which of the seven (7) types of  RIGS EQUIPMENT/MACHINE to invest in. The said equipment are; Storm B-13 worth $10 valid for 20 days, S18J-3003 worth $30 valid for 60 days, M2-14T worth $40 valid for 200 days, MST-3004 worth $40 valid for 120 days, 1246-30T worth $493 valid for 365 days, M20S-98T worth $691 valid for 365 days and JHS-32 worth $789 valid for 365 days.

HeroMining flagged by the SEC

Following this, the entity promises the investor earnings from ₱1,000 up to ₱144,905. Moreover, investors are also enticed by a promise of earning 60% from the profit of their successful recruit or invited friends. An investor can also earn through staking for 1 week up to 3 months ranging from 10% up to 240%.

In a statement, the SEC emphasized that an “investment contract” exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is prominent in the scheme of HEROMINING/HERO MINING/HERO MINING INTERNATIONAL GROUP.

However, as per the Commission, the entity is not registered as a corporation or partnership and operates without the necessary license and/or authority to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC). 

“Further, the scheme employed by HEROMINING/HERO MINING/HERO MINING INTERNATIONAL GROUP, shows indication of a possible “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 stressed.

Accordingly, the Commission emphasized that offering and selling of securities in the form of investment contracts using the “Ponzi Scheme” is NOT a type of security that can be registered.

“In view thereof, the public is hereby advised to STOP INVESTING in the investment scheme being offered by HEROMINING/HERO MINING/HERO MINING INTERNATIONAL GROUP, and its representatives,” the SEC concluded.

Consequently, the SEC highlighted that those who act as salesmen, brokers, dealers or agents on behalf of the entity will be criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (₱5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC.

In line with this continuous growth in schemes targeting Filipino investors, the Commision has been also continuous in tracking and flagging down entities for selling securities and investments without the proper license required. To read more about SEC advisories click here. 

Prior to this, it can be remembered that a victim of online invest platform Flint reported that the administrators of the said app are nowhere to be found and more likely scammed him. Due to this, his investment of over 200,000 will probably remain as virtual money inside the application. (Read more: Online App Scams Man With P230k Investment )

This article is published on BitPinas: SEC Cautions Public Not to Invest in HeroMining Scam

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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