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SEC Flags Lebronify, Authority Circle Unauthorized Investment Scheme

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  • The SEC reveals that LEBRONIFY, which solicits investments publicly, is an unlicensed company in the Philippines.
  • The company is promising 100% interest after a lock-in period of 12 months.
  • The Commission said those involved in the scheme might face penalty of up to ₱5 million or jail time up to 21 years.

The Philippine Securities and Exchange Commission (SEC) issued a public advisory on August 3, warning the public against investing in LEBRONIFY / AUTHORITY CIRCLE, an unauthorized entity involved in investment activities.

According to the SEC, LEBRONIFY / AUTHORITY CIRCLE is not authorized to solicit investments from the public.

This entity, under the disguise of a freelancing consultancy, promotes various investment options with hefty returns, primarily on social media platforms managed by a person named NEIL REICHL.

(Read more SEC advisories here.)

SEC Lebronify Neil Reichl
Image from SEC

Promised Returns and Unlicensed Registrations

LEBRONIFY / AUTHORITY CIRCLE offers investment options of Php ₱500,000, ₱750,000, or ₱2 million.

  • It promises a 100% interest after a lock-in period of 12 months for the first two options.
  • As per the SEC, these activities constitute an “investment contract,” a type of security that must be registered with the SEC.
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The SEC also said LEBRONIFY / AUTHORITY CIRCLE is not in its list of registered corporations in the Philippines.

(Read more: SEC Commissioner Discusses Fintech, Crypto Regulations, and Binance Situation in the Philippines)

Photo for the Article - SEC Flags Lebronify, Authority Circle Unauthorized Investment Scheme
Online post of Lebronify as gathered by SEC.

LEBRONIFY’s Ponzi Scheme Signs

The SEC also highlighted that the operation model of LEBRONIFY / AUTHORITY CIRCLE exhibits characteristics of a Ponzi scheme.

  • In such a system, returns to earlier investors are paid using the money contributed by new investors, a strategy that is not only unsustainable but also illegal.

(Read more: Leaders of Illegal Investment Scheme Arrested in Baguio)

Photo for the Article - SEC Flags Lebronify, Authority Circle Unauthorized Investment Scheme
Online post of Lebronify as gathered by SEC.

Penalties for Offenders

The commission advises the public not to invest or to cease investing in the scheme offered by LEBRONIFY / AUTHORITY CIRCLE and its representatives.

Violators may be held criminally liable with penalties reaching up to ₱5 million, imprisonment of up to 21 years, or both.

The SEC encourages anyone with information regarding LEBRONIFY / AUTHORITY CIRCLE’s operation to report to the commission through their email at epd@sec.gov.ph.

This article is published on BitPinas: SEC Flags Lebronify’s Unauthorized Investment Scheme

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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