SEC warns public against dealing with ex-PSE employee

MANILA, Philippines – The Securities and Exchange Commission (SEC) has warned the public against dealing with a former employee of the Philippine Stock Exchange (PSE) who is allegedly engaging in fraudulent transactions with pooled investor money.

In an advisory posted on its website, SEC said it has received reports that an individual formerly connected with the PSE has been allegedly pooling funds from the public to be invested in PSE-listed stocks under the name of his company. 

“He promises returns as high as 50% for a short period of time. Per verification, the said individual is neither a registered salesman nor is his company registered with the Commission to conduct investment-taking from the public,” the SEC said.

It did not name the individual but said this person gained the confidence of the public through  public seminars and lectures on investments in the stock market and represented himself as associated with the PSE and certain registered brokers.

The scheme appears to constitute fraudulent transactions under Section 26 and violation of Section 28 of the Securities Regulation Code, the SEC said.

“In this regard the public is hereby advised to exercise caution in dealing with this person and in investing their money in what appears to be a high yield investment,” SEC said.

“The Commission urges anyone who has knowledge or information about the scheme as described above to report to the Commission or for those who have already been a victim by the above person to execute an affidavit so that the appropriate action and/or proceeding be initiated by the Commission to protect the investing public,” the statement concluded.

Earlier this month, the PSE also advised the public to exercise caution in dealing with individuals who are not licensed to solicit funds for stock market investments.

The stock exchange reminded those interested in investing in the stock market that they are better off opening their own account with PSE-accredited brokerage firms and to transact only with employees of their chosen brokerage firm

It also asked the public to be wary of investment solicitations that offer share prices at discounted prices as these schemes may include offering supposed shares of employee stock option plans. – Rappler.com

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