SCUTTLEBUTT

Other people’s money

Ponzi schemes come in different shapes and sizes but the common denominator is that these gimmicks offer returns that are too good to be true, which is often the case.

Beauty products, health supplements, real estate, and even ghost oil projects have been offered as the key products in these rackets which raise money mainly through solicitation of investments.

At first, the returns are impressive such as the investment being doubled within a certain period such as a month or two, but later on the fountain slows down and stops as the flow of money from the victims stops.

The Securities and Exchange Commission (SEC) has lately warned the public to not invest in offerings by Empressly Skin Care Center Corp.

The SEC said the corporation does not have a license to solicit investments, which is a standard warning for the illegal scheme.

The government agency found that Empressly Skin Care Center Corp. promises the public at least P30,000 annual income or 5 percent monthly interest after investing a minimum of P50,000.

The corporation claims it needs extra funds for expansion of its clinic branches and investments will be doubled within one to three years.

“The SEC prohibits deceptive solicitation of investments from the public which includes Ponzi schemes and such other schemes involving the promise or offer of profits sourced from investments or contributions by investors themselves without a license or permit from the SEC,” the government agency said.

While a business owns an SEC certificate of registration to become a corporation, the government agency cautioned the public that a separate license for investing activities is required.

State probers’ new hub

The National Bureau of Investigation will have a spanking new office under a lease deal with Filinvest Cyberparks Inc. (FCI).

FCI’s proposal won a rigorous bidding process and it will be leasing FCI’s prime office spaces at Filinvest Cyberzone Bay City in Pasay City.

Nine floors will be occupied by NBI, with a total gross leasable area of 23,595 square meters, within two buildings of the FCI office complex.

“After inspection and evaluation, the offered leased spaces were then post-qualified and resolved to be compliant with NBI’s requirements contained in the bidding documents,” FCI parent Filinvest Land Inc. (FLI) said.

NBI’s newly appointed director, Ret. Judge Jaime Santiago said the office transfer will boost its investigation, intelligence and forensic capabilities and ensure flawless service to the public.

IPOs confirm RE boom

Renewable energy (RE) is on a boom in the queue of such companies doing an initial public offer.

Companies such as Citicore RE Corp. and Repower Energy Development held IPOs.

The next company that will be listed is NexGen Energy Corp. (XG), a pure wind and solar energy company to communities at a Levelized Cost of Energy. It received regulatory approvals from the Securities and Exchange Commission and the Philippine Stock Exchange for a July IPO. Under the IPO plan, up to 300 million common shares will be sold at P1.68 per share. There will be an overallotment option that would allow for the sale of up to 45 million secondary common shares.

China Bank Capital Corporation is serving as the sole issue manager, joint lead underwriter, and sole bookrunner for the offering. Investment & Capital Corporation of the Philippines is also serving as joint lead underwriter.