Global Intergold to SEC: Group misusing our name
MANILA, Philippines —Zurich-based Global Intergold (GIG) has informed the Philippine Securities and Exchange Commission (SEC) about an "unscrupulous group" misusing its name for illegal investment-taking operations.
The company's statement comes on the heels of a cease and desist order (CDO) filed on Friday, November 6, by the SEC against GIG, EmGoldex, and Prosperous Infinite Philippines Holdings Corporation (PIPHC), which are supposedly involved in a Ponzi-type scheme that attracted mainly young Filipinos and overseas Filipino workers.
In response, Global Intergold said it has already instructed its legal counsel in the Philippines to pursue those unauthorized parties who have misused its name for their illegal gain.
"Global Intergold has become aware of certain activities in the Philippines by an unauthorized group that has promoted business similar to, or purporting to be, Global Intergold. This unauthorized group is not Global Intergold,” GIG President Jens Krebs said in the statement.
The charges came after two Philippine National Police (PNP) officials testified against the firms after they reportedly lost millions by investing in the Ponzi-type scheme.
GIG, along with the two other companies, is accused of violating Section 8 and 28 of the Securities and Regulation Code (SRC), for selling or offering for sale or distribution unregistered securities to the public and without a license, respectively.
Each violation of the SRC is punishable, upon conviction, with a fine of not more than P5 million ($106,484.92) or imprisonment of 7 to 21 years, or both.
The GIG president said his company will continue to take action to protect its customers and the public from the supposed unauthorized group.
Global Intergold buys and sells gold bars from several government-regulated suppliers and has over one million customers worldwide.
Other two firms, EmGoldex and PIPHC, have not yet issued a statement regarding the CDO order.
But based on the SEC investigation, EmGoldex has been inviting Facebook users to invest in its Pinoy Style Patak-Patak scheme which promises huge returns for their investment.
To date, EmGoldex has been banned in other countries based on international media reports. (READ: Not all that glitters is gold) — Rappler.com