Solace PH is a Ponzi Scheme – SEC
Those who will act as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers, and enablers of Solace PH. — SEC
- The SEC warned Filipino investors against Solace PH and a certain Shirley Mae Roxas Solis, who claims to help others earn passively through her four years of experience in crypto trading.
- Solace PH offers investment plans of 110% profit in 21 days, 40% profit in nine days, and a scheme with a specified profit percentage in seven months.
- But the SEC found out that Solace PH is not registered as an entity, does not have a license to offer investment contracts, and has declared it a Ponzi Scheme.
In its continuous combat against suspicious companies in that country that entice the public to invest, the Securities and Exchange Commission (SEC) has released a public advisory against online platform Solace PH and its alleged CEO, Shirley Mae Roxas Solis, who is claiming to help others earn through her years of experience in crypto trading.
The SEC Advisory is viewable at the end of the article, where all of the information are sourced. Also read more SEC advisories here.
Table of Contents
Solace PH: The Scheme
According to the Commission’s investigation, Solace PH has been offering multiple investment plans in the country.
The company’s scheme has been actively promoted by Solis’s verified personal Facebook account on the Facebook group “Solace PH Official Community.” The group, which was created on September 16, 2023, currently has more than 6,000 members, 600 of them newly joined over the last seven days, with 500 posts in just a month.
Furthermore, as per Solis, Solace PH is the “financial solution to live the life that we want.”
As per the SEC, Solace offers the following investment plans:
- 110% profit in 21 days with a minimum amount of ₱500 and maximum amount of ₱20,000.
- 40% profit in nine days with a minimum amount of ₱500 and maximum amount of ₱20,000.
- 7-UP IPON CHALLENGE: a scheme with a specified profit percentage in seven months. For instance, a ₱25,000 investment in December will be ₱13,826,754.64 by June.
SEC’s Investigation: Solace PH is Not Registered
Solace PH’s investment schemes involve the offering and selling of securities in the form of an investment contract, which is defined under the Securities Regulation Code and is required to be registered with the SEC.
“Considering that the scheme of SOLACE PH, involves the offer and sale of securities, the law requires it to have a SECONDARY LICENSE from the Commission pursuant to Sections 8 and 12 of the SRC. However, the investigation conducted by this Department shows that SOLACE PH is NOT REGISTERED with the Commission as a corporation or partnership,” the regulatory agency explained.
To be able to offer and sell securities, a company needs to first register as a corporation or partnership with the SEC before securing a secondary license to solicit investments from the public. Which, Solace PH does not have both.
“SOLACE PH, being an unregistered entity, is NOT AUTHORIZED to solicit investments from the public because prior registration with the commission is required before securing a secondary license,” the Commission emphasized.
Solace PH is Ponzi, SEC Added
Moreover, the SEC also declared Solace PH’s schemes a Ponzi Scheme, an investment scheme where the investment funds of the new investors are being used to pay the profits promised to earlier investors.
“SOLACE PH has no legitimate source of generating profits as it has no service or products to offer and the investment’s fate is entirely reliant on the supposed expertise and trading skills of the CEO SHIRLEY MAE SOLIS in a highly-volatile asset class of cryptocurrency,” the regulatory agency stressed.
“A business employing the ‘Ponzi Scheme’ is bound to fail because they have no clear way of making profits and is only relying on future investors to pay earlier investors. When the business cannot find new investors, the asset bubble will eventually burst and the said business will collapse.”
A Ponzi Scheme is also not a registrable security, as per the Commission, as it is considered fraudulent and unsustainable, adding that they will never issue licenses to entities with this kind of scheme:
“The Financial Products and Services Consumer Protection Act (FCPA) also prohibits investment fraud which is defined under the law as any form of deceptive solicitation of investments from the public which includes Ponzi Schemes and such other schemes involving the promise or offer of profits or returns sourced from the investments or contribution made by the investors themselves and the offering or selling of investment schemes to the public without a license or permit from the SEC.”
SEC Warns vs Solace PH
May be held criminally liable. This is the warning of the SEC to those who will act as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers, and enablers of Solace PH and its CEO, Shirley Mae Solis.
If found guilty of supporting and promoting Solis’ investment schemes, the penalty, according to Section 28 of the FCPA and Section 28 of the SRC, could be a ₱5 million maximum fine, 21 years of imprisonment, or both.
Solis and other persons involved in Solace PH will also be reported to the Bureau of Internal Revenue (BIR) for appropriate penalties and taxes to be assessed, the SEC said.
“In view thereof, the public is hereby advised NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by SOLACE PH and SHIRLEY MAE SOLIS 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 SOLACE PH and SHIRLEY MAE SOLIS,” the Commission concluded.
This article is published on BitPinas: Solace PH is a Ponzi Scheme – SEC
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May I ask, why is still her business flourishing. Can government agency just arrest the person. It will be advantage. Since more and more people entice this kind of Ponzi scheme. Since many of us Filipino wanting to have a better lives by way of quick but dangerous investment. It will be a service to all the Filipino if this can stop immediately. Just a cents of suggestion.
it is IRRELEVANT if the platform is registered or not ! As long as it helps Filipinos better understand Financial Management, to grow their money. It all depends on who’s running the platform, i believe some are scammers, SOME ARE NOT!!!
Cryptocurrency is a DECENTRALIZED PLATFORMM, & is not under ANY Government monopoly & control. It is free to all people who wants to maximize & use it.
BOTTOM LINE :
Filipinos should learn to study & maximize their Financial Management skills, in order to be informed properly, use that information to MULTIPLY their WEALTH, acquire ASSETS & Build their MULTIPLE SOURCES of INCOME !