Surigao city: The Securities and Exchange Commission - Butuan City Extension Office (SEC-Butuan) has issued a warning to residents of Surigao City and the province of Dinagat Islands regarding an unauthorized investment scheme promoted by JFunds Business Center.
According to Philippines News Agency, SEC-Butuan announced that JFunds Business Center is not registered with the commission and lacks authorization to offer, solicit, sell, or distribute any investment or securities to the public. The agency highlighted that the scheme exhibits characteristics of a Ponzi scheme, wherein funds from new investors are used to pay false profits to earlier investors, primarily benefiting top recruiters, and harming later participants when new investor numbers dwindle.
Reports have reached SEC-Butuan about JFunds' operations in Surigao City and Dinagat Islands, where the entity coordinated with local government units and disseminated announcements down to the barangay level. Influential personalities reportedly endorsed the business and participated in inviting individuals to join.
"These efforts reportedly resulted in a significant influx of participants, largely motivated by the promise of free dinner and the distribution of five kilograms of rice to each attendee during the events," SEC-Butuan said.
Agency records indicate that orientation activities took place on February 8 at Semtoco in Surigao City; February 28 at Kulyamihan, Barangay Poblacion, Cagdianao; and March 1 at Jacquez Gym in Barangay Jacquez, San Jose, both in Dinagat Islands. The gatherings reportedly began with praise and worship, transitioning midway to a business and investment opportunity pitch, encouraging attendees to invest amounts ranging from PHP5,000 to PHP1,000,000, with promises of a 7.5 percent weekly or 30 percent monthly return.
"The investment scheme being promoted appears to follow a structure like previously reported high-yield investment schemes, comparable in nature to KAPA Community Ministry International," SEC-Butuan noted, referencing a significant financial fraud scandal that affected millions of Filipinos.
SEC-Butuan cautioned that individuals involved in JFunds' operations, especially those selling or convincing others to invest, may face prosecution and criminal liability under the Financial Products and Services Consumer Protection Act and the Securities Regulation Code.
