SEC warns public to avoid Dragon One


The Securities and Exchange Commission (SEC) on Thursday warned the public against investing in Davao-based Dragon One Network Trend Corp., saying the firm is engaged in unauthorized investment activities.

“Based on the investigation conducted by the SEC Davao Extension Office and the Enforcement and Investor Protection Department (EIPD), the SEC found Dragon One Network Trend Corp. to be engaged in unauthorized investment taking activities,” the agency said in a statement.

Javey Paul Francisco, SEC-Davao extension office director, said that official records show that Dragon One is not authorized to solicit investments from the public.

“The firm has not secured the necessary permit from the SEC as required under Section 8 of the Securities Regulation Code [SRC],” he said.

“Moreover, its incorporators and officers are not licensed to solicit investments. The authorized purposes of ‘Dragon One’, as stated in its Articles of Incorporation, do not include investment-taking activities,” Francisco said.

The agency explained that the illegal investment scheme of Dragon One involves its officers and agents offering investment packages whose price range goes from P1,800 to P360,000.

Upon payment of the chosen package, a Dragon One investor will receive a package of products and four company vouchers or post-dated checks equivalent to 34.72 percent of the investment, which should  mature at intervals of 15 days. All four post-dated checks are supposed to be encashed in two months.

“Investors are enticed to join the company because of the profits they will get when all the checks are encashed in 60 days,” the SEC director said.

The agency has repeatedly reminded public investors that registration with the SEC by a corporation does not automatically make the company’s business activities legitimate.

As Section 8.1 of the SRC provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

“Hence, securities such as the investment packages being offered by Dragon One, shall not be sold or offered for sale or distribution within the Philippines without prior registration with the SEC,” the regulator’s official said.

The SEC has been relentless in its drive against investment scam perpetrators, continuously issuing warnings, advisories, and Cease and Desist Orders against them. Several criminal actions have also been filed with the Department of Justice.

“The Commission, through the EIPD shall not hesitate to invoke the full force of the law by imposing sanctions and by filing criminal charges against violators,” Francisco said.


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