The Securities and Exchange Commission (SEC) issued advisories against online entities Right Circle Trading Inc. and Wheretogo Travel Advertising Company for soliciting investments from the public without the authority and necessary license to do so.
In separate advisories posted on the SEC website, the corporate regulator enjoined public investors to exercise caution in dealing with the investment entities, who were acting in violation of several provisions under the Securities and Regulation Code (SRC).
The SEC said Right Circle has been offering investments through what it dubs compensation plans with bonuses without the authority from the commission. It also found that Right Circle claimed having secured a certificate of incorporation from the SEC as early as July 2016 although SEC records show the company was incorporated only in 23 July 2019.
“Hence, any document allegedly issued by the Commission showing that the subject company was registered earlier than 23 July 2019 is FALSIFIED,” the SEC said.
It clarified that incorporation also only grants juridical personality to entities, and does not give them the authority or license to offer, solicit, sell or distribute investments or securities, as this requires a secondary license from the SEC.
Meanwhile, the SEC said Wheretogo Travel, owned and operated by an individual named Yollie Mark Roquero Brown, is not registered with the SEC.
The commission said the online entity has been enticing the public to invest P2,899 and earn through ways such as logging into their account and clicking advertisements in the website to earn points for travel, even though Wheretogo Travel also does not have the authority to solicit investments.
Under section 78 of the SRC, entities or individuals found engaging in such activities may be prosecuted, held criminally liable and penalized with a maximum fine of P5 million or penalty of 21 years of imprisonment or both.