MANILA, Philippines – The Securities and Exchange Commission (SEC) warned the public against investing in Scentko World Corporation and its parent company, Brendahl Cruz Holdings, which have been promising a 400% return from their "buy and earn" program.
In an advisory posted on Wednesday, July 31, the SEC said Scentko and Brendahl Cruz Holdings are not authorized to solicit investments from the public.
Scentko entices the public to buy perfume and beauty products in exchange for cash equivalent to 400% of the purchase price. A member can get the money even without reselling the products, but he or she must recruit new members.
Aside from the cash, Scentko promises a 10% referral fee for every new recruit.
The SEC said Scentko and Brendahl Cruz Holdings are registered as corporations, but do not hold the necessary documents to engage in investment activities.
"In this light, those acting as salesman, broker, or agent of Scentko and Brendahl Cruz Holdings may be prosecuted and held criminally liable. They may face a maximum fine of P5 million or imprisonment of 21 years or both, pursuant to Section 73 of the Securities Regulation Code," the commission said.
According to the SEC, Scentko and Brendahl Cruz Holdings add to at least 42 investment schemes which have been flagged in 2019.
The public is encouraged to report any information on their operations by calling (02) 818-6047. – Rappler.com