The Securities and Exchange Commission (SEC), the country’s regulatory body, issued a warning to the Filipino public to be wary of invitations on social media sites like Facebook to invest in Emgoldex Philippines, a company that claims to offer huge returns to clients who wants to make money through trading in gold bars.
According to an advisory issued by the SEC in February, Emgoldex Philippines is “not a registered corporation or partnership”. Thus, the said company is deemed fake and that the investing public must not allow themselves to be tricked by its Ponzi-like scheme.
Emgoldex Philippines offers an investment program called “Pinoy Style Patak-Patak” where an investment of P1, 000 will earn huge profits ranging from P5, 000 to P10, 000 or an investment of P35, 000 will earn P180, 000 to P360, 000. An investor can earn from his investments by recruiting two other people to invest in the company.
Since the said company is not registered with the SEC, it is not allowed to operate, transact, and do business in the Philippines. Furthermore, it said that Emgoldex Philippines website has no specific address but merely telephone numbers.
A Filipino Overseas Worker from Saudi Arabia said that he invested almost all of his earnings in the company. He was enticed to invest after he saw the Emgoldex Philippines advertisement on Facebook. Although he claimed to have studied the investment scheme before putting his money into the company, he did not know that it was not a registered business in the Philippines. Now, he does not know if he can get his money back and intends to file a lawsuit. However, he does not know how and who to pursue.
Countries like the United States, Canada and United Arab Emirates have issued a ban on Emgoldex because of complaints from numerous investors and its pyramid scheme and marketing strategy. The National Bureau of Investigation (NBI) of Finland also revealed that while the company claims to be a registered business in Germany, its headquarters is based in Dubai. It has a virtual office in Germany where secretaries respond to telephone calls and emails in the name of the company.
Thus, the SEC advises the public “to exercise self-restraint from investing their money into such high-yield risk investment scheme and to take the necessary precautions when dealing with the said company.”
In the meantime, an employee of Emgoldex Philippines denied that its “Pinoy Style Patak-Patak” a bogus investment scheme. But an official statement has yet to be issued by the said company.