SEC Flags Lebronify, Authority Circle Unauthorized Investment Scheme
SEC raises an advisory against a new investment scheme in the Philippines under the guise of a freelance consultancy.
- 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.)
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.
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)
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)
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.
