SEC-Davao warns public vs. new ‘fraudulent’ money scheme

SEC-Davao warns public vs. new ‘fraudulent’ money scheme

DAVAO CITY – The Securities and Exchange Commission (SEC) in Davao has warned the public on Wednesday against investing in the new money scheme called Repa Paluwagan.

In a statement, the SEC-Davao clarified that the operation of the entity is a “Ponzi Scheme,” an investment fraud that involves the payment of purported returns to existing investors from funds contributed by the new investors.

Data from the Davao City Anti-Scam Unit (ASU) revealed that around 50 investors of the particular money scheme operation have filed complaints against its administrators.

The complainants who invested more than PHP10 million revealed that the administrators have allegedly run off with their money.

“This advisory is prompted by reports and inquiries received by the Commission from the public asking whether Repa/Repa Paluwagan with operations in Bohol, Davao, Bukidnon, and Cebu is registered with the Commission and if it can solicit investments from the public,” the SEC-Davao said in a statement.

The SEC-Davao added that the Repa or Repa Paluwagan company does not appear as a registered corporation or partnership on their database.

“Further, it is not [allowed] to solicit investments/placements from the public nor to issue investment contracts and other forms of securities since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 12 of the Securities Regulation Code,” the statement said.“We hope you can help us share this information to protect the investing public.” (PNA)

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