THE Securities and Exchange Commission (SEC) has issued an advisory on Fortune Wave over investment solicitations allegedly made without proper registration.
Fortune Wave Solution Hub OPC, Fortune Wave Trading, and Fortune Wave Trading PH are not authorized to solicit investments from the public, in violation of Republic Act No. 8799 or the Securities Regulation Code (SRC), the SEC said in an advisory dated July 28 on its website.
The three entities were found to be offering investment schemes that promise returns of 3% up to 330%, depending on the initial investment, the SEC said.
The SEC said that Fortune Wave Solution Hub OPC is registered as a one-person corporation with the commission but has not registered any securities offerings.
On the other hand, Fortune Wave Trading and Fortune Wave Trading PH are not SEC-registered corporations, it said.
The SEC noted that the investment schemes of the entities show signs of a Ponzi scheme, where returns to early investors are sourced from the capital contributed by subsequent investors rather than from legitimate business activities.
“The commission hereby strongly advises the public to desist from investing, whether directly or indirectly, in any investment scheme being offered by the above-named entities or by any other persons or entities operating under the same or similar arrangements,” the advisory said.
“The public is likewise enjoined to exercise heightened vigilance and due diligence when dealing with solicitations for investment, especially those involving unrealistically high returns with minimal risk,” it added.
Under the SRC, securities must not be sold or offered without a registration statement filed with and approved by the SEC. – Revin Mikhael D. Ochave
