SEC Warns Public Against Multi-Fortune Stake and its Double-Your-Money Scheme
The Securities and Exchange Commission (SEC) issued an advisory against Multi-Fortune Stake headed by Ricky Galon, tagging it as a “Ponzi Scheme.”
In a statement, the Commission said that the Multi-Fortune Stake entices the public to invest therein with guaranteed total earnings of 100% in just 30 days or double-your-money scheme in just 30 days through its plans.
The entity also offers direct referral bonuses to the individuals that will successfully onboard others to invest on its offered plans.
“MULTI FORTUNE STAKE is not authorized to solicit investments from the public as it is NOT REGISTERED with the Commission and cannot therefore secure prior registration and/or license to solicit investments from the Commission as prescribed under Section 8 of the Securities Regulation Code,” the advisory read.
The SEC also reminded the public that investment contracts like this are considered a Ponzi Scheme, thus, it will not issue a permit to entities that are engaged in this type of investment.
A Ponzi scheme is considered a fraudulent investing scam as it promises high rates of return with little risk to its investors, it generates its income by paying its existing investors from the funds collected to its new investors.
In addition, the advisory also emphasized that the name Christilyn Barasan that appears on the social media posts of
Further, the name Christilyn Barasan, which appears on the social media posts of Multi-Fortune Stake is not registered or licensed to offer investments and act as a capital market professional.
The Commission also warned all the individuals who act as salesmen, brokers, dealers, agents, or those who claim as part of Multi-Fortune Stake may be persecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million pesos (Php5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.
It also cautioned individuals who recruit other to join the investment venture of the entity, even if they are not part of Multi-Fortune Stake, may also incur criminal liability or may be sanctioned or penalized accordingly as held by the Supreme Court in the case of Securities and Exchange Commission vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
“In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by MULTI FORTUNE STAKE as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of MULTI FORTUNE STAKE,” the advisory concluded.
Recently, the SEC issued warnings against different entities that offered investment schemes online, through an application, or even in crypto. Check out more SEC Advisories here.
This article is published on BitPinas: SEC Warns Public Against Multi-Fortune Stake and its Double-Your-Money Scheme
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