SEC Warns About Group Misusing Marcos Jr.’s Name

BBM International Inc. continues operations despite revoked registration, falsely claiming legitimacy with President Marcos Jr.’s image.

The SEC has issued a warning against Bagong Bansang Maharlika (BBM) International Inc. for illegally soliciting investments using President Ferdinand Marcos Jr.’s image, despite its corporate registration being revoked.

What’s the significance: This alerts the public to the ongoing fraudulent activities of a group that falsely associates itself with the current administration, potentially saving investors from financial loss.

The basis: The BBM group still operating despite its revoked registration highlights a broader issue of fraudulent investment schemes in the Philippines, where groups exploit political figures to gain credibility.

• BBM International Inc. had its corporate registration revoked in November 2023 for illegally collecting membership fees by promising benefits like food security and cash assistance. 
• The group falsely used President Marcos Jr.’s image in its marketing materials, leading to an SEC crackdown.
• SEC issued the warning to the public on August 12, 2023, to exercise caution with BBM International.

The SEC’s revocation of BBM International Inc.’s registration means the group can no longer legally operate or solicit investments.

• However, the group continued activities in Visayas and Mindanao despite SEC’s revocation order in late 2023.
• False Promises: BBM International collected membership fees, falsely promising food security, free education, free hospitalization, cash assistance, and livelihood opportunities.

Prior actions of the SEC with BMM International:

• March 18, 2022: Bagong Bansang Maharlika (BBM) International Inc. was registered as a non-stock corporation with the SEC under Registration No. CN2022030046453-01.
• August 28, 2023: The SEC issued an advisory warning the public that BBM International Inc. ‘s registration does not authorize it to conduct activities requiring other permits or licenses, such as operating as a Private Social Welfare Development Agency (SWDA) without approval from the DSWD.
• September 4, 2023: The SEC issued a Show-Cause Order to BBM International Inc. for serious misrepresentation. The corporation was directed to respond, but no answer was submitted despite repeated reminders.
• September 11, 2023: The SEC held a conference with BBM International Inc. representatives, where a hard copy of the Show-Cause Order was served. This was the first of three conferences conducted with the company.
• September 29, 2023: The second conference was held, where BBM International Inc. representatives again appeared.
• October 16, 2023: The third conference took place, where BBM International Inc. representatives claimed that a response to the Show-Cause Order had been sent to the SEC.
• October 20, 2023: All incorporators and trustees, except for one, declared that they were no longer connected with BBM International Inc.
• October-November 2023: The SEC discovered that BBM International Inc. had not submitted its Mandatory Disclosure Form (MDF) as required by law.
• November 2023: The SEC issued an Order revoking the Certificate of Incorporation of Bagong Bansang Maharlika (BBM) International Inc. for serious misrepresentation, engaging in ultra vires acts, and operating without necessary licenses. The corporation was found to have misled the public with false promises of benefits and misrepresented its legitimacy by using the President’s image.

Between the lines: The persistence of BBM International’s operations despite legal actions suggests a need for stronger enforcement and public awareness against fraudulent schemes.

What to watch: Potential further legal actions by the SEC and the response from local authorities in areas where BBM International remains active.

The bottom line: The public should remain vigilant against fraudulent investment schemes that misuse political figures’ images to gain trust and should report any suspicious activities to authorities.

Worth reading: Recently, the Commission also issued warnings against 3 platforms offering cryptocurrency trading and investments: Modesto Cardano Market Cap. Tr3ding Services OPC, Glass Coin, and Pionex Club. 

This article is published on BitPinas: SEC Warns About Group Misusing Marcos Jr.’s Name

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