Ponzi Scams

The following are some of the features of an internet-based Ponzi investment scams:
  • No SEC registration
  • Investment in foreign currency, preferably in US dollars
  • Offers of guarantees a huge profit in a very short period
  • Utilizes a binary network (i.e. upline and downline) to earn commissions
  • No paper trail
  • Promises little or no financial risk
  • Provision for a lock-up period where an investor cannot touch the investment (i.e., 60 days)
  • Assures pay-off of investments in a short time
  • Uses high-pressure methods to convince investors to reinvest their earnings
  • unknown principal office, address, founders, directors, or officers
  • Conducts orientation seminars informally
To report companies engaged in Ponzi investment schemes, contact Hubert Guevara, director of the SEC Compliance and Enforcement Department, 5/F SEC Building, EDSA, Greenhills, Mandaluyong City, Tel. (02) 727-3367.

To verify of a company is authorized or licensed to solicit investments from the public, call the SEC Market Regulation Department, Tel. (02) 721-5058, or the BSP's Supervision and Examination Department V, Tel. (02) 524-7011 loc 3017 or (02) 523-2582.