DAVAO CITY (MindaNews / 04 December) — The Securities and Exchange Commission (SEC) has warned the public against investing in mobile investment application Cashbaka.
In an advisory, the SEC confirmed that individuals representing Cashbaka have been enticing the public to invest their money with the investment app in the SEC-Davao Extension Office’s area of responsibility covering Davao Region, Soccsksargen, and Cotabato City and Maguindanao in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
The app entices the public to invest by purchasing virtual cows on its online platform for a promise of receiving 150% to 200% interest within 30 days, including a return of capital within 15 days.
Alleged investors of Cashbaka also promote the investment scheme through social media.
Through this scheme, investors are promised to receive monthly incomes of P750, P3,060, and P8,820 for their investment of P500, P1,700, and P4,200, respectively.
The Commission said that Cashbaka is neither registered as a corporation or partnership nor authorized to solicit investments from the public because it did not secure prior registration and/or license to sell securities or solicit investments.
Section 8 of the Securities Regulation Code (SRC) provides securities “shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.”
The agency also warned that salesmen, brokers, dealers or agents of Cashbaka may be held criminally liable for offering and/or selling or convincing people to invest in the investment scheme allegedly through the internet or any other means.
It added that a penalty of P5 million may be imposed upon the violators or imprisonment of 21 years or both.
“We are reminding the public to exercise caution when dealing with individuals or groups soliciting investments for and on their behalf,” it said. (Antonio L. Colina IV / MindaNews)