THE SECURITIES and Exchange Commission (SEC) has issued an advisory against Legacy Asia International and its owner for allegedly soliciting investments from the public while promising unusually high returns.
In its advisory, the SEC said Legacy Asia has been using its Facebook page to collect funds from the public, presenting these as investments or business loans with promised returns of 22%, 55%, 71%, or 88% over five, 15, 20, or 25 days, respectively.
“Investors may register through their website… or join different Facebook groups that are managed by team leaders to manage their investments and serve as their adviser in future transactions,” the corporate regulator said.
The scheme offers four investment plans, each with varying profit rates tied to specific minimum and maximum investment amounts, the SEC added.
The commission said these arrangements fall under the definition of an investment contract, which must be registered and authorized under the Securities Regulation Code (SRC).
Under the SRC, an investment contract exists when money is placed in a common enterprise with the expectation of profits primarily from the efforts of others.
“The public is hereby informed that Legacy Asia International is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the SRC,” the SEC said.
The regulator advised the public to avoid or discontinue investing in the scheme, warning that those acting as promoters, recruiters, or agents may face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC, with penalties of up to P5 million or 21 years’ imprisonment, or both.
The SEC-provided website link was unavailable, and the owner’s other contact information is not publicly accessible. — Alexandria Grace C. Magno
