SEC files complaint vs PetroMobil for alleged Ponzi scheme

MANILA, Philippines – The Securities and Exchange Commission (SEC) filed a criminal complaint against oil company PetroMobil Corporation for allegedly enticing the public to invest in gas stations and unregistered securities with high returns – transactions that the company is not allowed to undertake.

The SEC filed the criminal complaint before the Department of Justice, where it accused officers of PetroMobil of violation of the provisions of the Securities Regulation Code (SRC), Republic Act No. 10175 or the Cybercrime Prevention Act, and Republic Act No. 9060 or the Anti-Money Laundering Act.

The SEC said PetroMobil offered a co-ownership program for a minimum capital of P400,000 and promised returns of as much as P100,000 in just three months. The company also told investors that they had a chance to co-own 17 gas stations.

PetroMobil conducted these solicitations online, promising to give shares of stocks to each co-owner through a deed of assignment. It also offered an oil importation co-ownership program for a minimum capital of P500,000. 

“Further, the scheme being offered by PetroMobil Corporation is in the nature of Ponzi scheme where the profits or payouts shall be taken from incoming investors or additional pay-ins of existing members-investors considering that it does not have any underlying legitimate business from where it could source its promised return on investment to its investors. Such scheme is prohibited under Section 26 of the SRC,” the SEC complaint read. 

The SEC already asked PetroMobil to stop its unauthorized solicitation of investments from the public prior to the complaint, but the company allegedly continued its illegal scheme.

The SEC revoked the company’s registration in May 2022. – Rappler.com