THE Securities and Exchange Commission (SEC) has released an advisory against Elite Alliance Vera Trade System OPC for soliciting investments from the public without the required license from the regulator.
Led by a certain Eins Angelo Ruiz Valencia, the entity also goes by EliteAllianceVera Computer Trading, Elite Alliance Vera Trade Ltd., Elite Aliance Vera Trade International, and EAV Trade.
The SEC said Elite Alliance Vera Trade System OPC was registered as a one-person corporation under Company Registration No. 2021070020495-22 on July 22 this year.
However, it is not authorized to solicit investments from the public since it does not have the necessary license as required under the Securities Regulation Code (SRC).
The Valencia-led entity is said to be offering a program that promises 100% returns every 15 days for as low as P500. It also offers a 50% direct referral bonus and a one percent unilevel bonus.
The SEC also said the scheme offered by Elite Alliance Vera Trade System “shows indication of a possible ‘Ponzi Scheme,'” wherein the investments of new investors are used to pay for the “fake profits” of those who invested in the program first.
“The commission will not issue a permit to offer and sell securities to the public to persons or entities that are engaged in this business or scheme,” the corporate regulator said.
BusinessWorld reached out to Mr. Valencia for comment via Facebook Messenger, but he has yet to respond as of writing.
The SEC is warning that those involved as salesmen, brokers, or agents in the scheme of Elite Alliance Vera Trade or for Mr. Valencia may be prosecuted or held criminally liable under the SRC. A penalty fee worth P5 million at most may be imposed and/or they may face 21 years if imprisonment.
“Further, the names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes be correspondingly assessed,” the SEC said.
The investing public is advised to not invest or to stop investing in the scheme offered by the entity. — Keren Concepcion G. Valmonte