Regulator warns of Davao scam

Subscribe Now March 11, 2013 at 01:58pm

THE SECURITIES and Exchange Commission (SEC) has warned the public of a Davao City-based firm illegally offering insurance plans, according to an advisory posted on the corporate regulator’s Web site. “The SEC has received reports that a certain company in Davao City is engaged in unauthorized sale to the public of insurance and pre-need plans, specifically life insurance and memorial plans, by means of a pyramiding scheme,” the advisory dated March 6 read.

The fraudulent scheme offers life insurance and memorial plans via membership that requires payment within five years of an unspecified amount due in monthly, quarterly, or semi-annual installments and inviting three other persons to do the same.

“The public is hereby warned that the offering to the public of insurance and pre-need plans such as life insurance and memorial plans without the proper license from the Insurance Commission is strictly prohibited by law,” the SEC noted.

“Before investing, make sure that the company offering life insurance and pre-need plans is properly registered with the SEC, and licensed to offer pre-need plans and life insurance by the Insurance Commission.”

Just last week, the SEC warned the public of a pyramid scheme targeting teachers in Tandag City, Surigao del Sur that promises to double in six months an initial investment of P16,800. Last January, SEC also warned of a similar scam in Imus, Cavite that offers unsustainable returns on initial investment ranging from as low as P3,000 to as much as P1.2 million.

The corporate regulator had been ramping up investor protection efforts since October last year, when it ordered Aman Futures Group Philippines, Inc. -- a Pasay City-based firm with operations in Pagadian City, Zamboanga del Sur -- to stop offering unregistered securities to the public after the group was charged with siphoning roughly P12 billion from the Visayas- and Mindanao-based investors.


« PDEA lauds Davao City’s reward scheme Poor boy from Davao del Sur tops PMA 2013 class »