Beware of Investment Scam: Lele Gold Farm Unregistered and Operating Illegally

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  • UPDATE: Lele Gold has reportedly shut down.
  • UPDATE: Streamers removed their content about Lele Gold Farm after SEC advisory
  • The Securities and Exchange Commission (SEC) has issued a warning to the public about the illegal activities of a mobile application called LELE GOLD FARM/LELE GOLD COIN/GOLD FARM.
  • The SEC states that the mobile application is not registered as a corporation or partnership and operates without the necessary license or authority to solicit, accept or take investments from the public. The investment scheme it offers is also deemed a Ponzi scheme, which is illegal.
  • The SEC has advised the public not to invest or stop investing in the scheme being offered by LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, and its representatives and warned those who participate in its illegal activities can be held criminally liable and subject to fines and imprisonment.

Update Jan. 17, 2023: Lele Gold has reportedly shutdown:

A mobile application, LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, that can be downloaded from the Google Play Store, is offering a luxurious way of earning money through playing games. However, the Securities and Exchange Commission (SEC) has issued a warning to the public about the illegal activities of the said mobile application.

(Check out more SEC Advisories on BitPinas.)

According to the SEC, LELE GOLD FARM/LELE GOLD COIN/GOLD FARM is offering an “investment contract” to the public, which is a kind of security that 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. However, the SEC has stated that the mobile application 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).

Furthermore, the SEC has revealed that the scheme employed by LELE GOLD FARM/LELE GOLD COIN/GOLD FARM has the characteristics of a “Ponzi Scheme” where money 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 has advised the public NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, and its representatives. Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abetters, and enablers of LELE GOLD FARM/LELE GOLD COIN/GOLD FARM, in soliciting or convincing people to invest in the investment scheme being offered by the said entity, including soliciting investments or recruiting investors through the internet, may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014).

In addition, the SEC has stated that 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 public is encouraged to report any information regarding the operation of LELE GOLD FARM/LELE GOLD COIN/GOLD FARM and its representatives by emailing epd@sec.gov.ph.

The SEC is warning the public to be cautious of investment scams such as LELE GOLD FARM/LELE GOLD COIN/GOLD FARM and to always check the legitimacy of any investment opportunities before investing.

This is a developing story.

This article is published on BitPinas: Beware of Investment Scam: Lele Gold Farm Unregistered and Operating Illegally

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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