THE Securities and Exchange Commission (SEC) has advised investors to exercise caution before investing in certain entities following reports that an SEC-registered company is allegedly enticing the public to invest in the said company.
The SEC said it received reports that Pluggle, Inc. claims to have an advertising website wherein its members receive gains from their initial investment of P1,000 by simply logging in everyday or by obtaining referrals.
“According to the information communicated to the Commission, Pluggle requires its members to sign up to its website through a sponsored link and to purchase an activation code worth P1,000 through their accounts using bitcoin or through other legitimate members or leaders,” the SEC said.
“The public is hereby informed that Pluggle, Inc., despite having been registered with the Commission as a corporation, is not authorized to solicit investments from the public as it has not secured the necessary license or permit from the Commission as required under Sections 8 and 12 of the Securities Regulation Code (SRC),” the SEC said.
Those who act as salesman, brokers, dealers, or agents conducting unauthorized solicitations shall be held criminally liable under Section 28 of the SRC and can be penalized with a maximum fine of P5 million or 21 years of imprisonment or both, the regulator said.
The company, however, denied allegations, adding that some investors clearly misunderstood the way Pluggle operates.
“As you all know, we are not and never will be an investment company … unfortunately, some people and sectors have misunderstood the way we do business, and maybe some members misrepresented Pluggle when talking to people,” Pluggle said in a social media post.
“Please be informed that the management and our lawyers are already looking into this and will take the necessary actions to respond and address this SEC advisory,” it added.