The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on LION CITY FINANCE GROUP, INC., warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public not to invest or stop investing in any investment scheme offered by the said company. Furthermore, SEC ordered the company and its officers or representatives to cease and desist from further engaging in activities of selling or offering sales of securities and investment contracts until the required registration is duly filled and approved by the Commission.
In support of this view, Coins.ph does not endorse or is affiliated in any way with such activities or products. Moreover, we have a zero tolerance policy on fraudulent activities and potentially scamming practices. In a separate article, we have enumerated tips on how you can avoid investment schemes and other online scams. We urge our customers to be extra diligent with their funds and to act within our User Agreement.
In response to numerous reports and inquiries received by the Commission
regarding the activities of LION CITY FINANCE GROUP, INC. (LION CITY), the
Commission wishes to inform the public that LION CITY is not authorized to solicit
investments from the public since it has not secured prior registration and/or license
from the Commission as prescribed under Sections 8 and 28 of the Securities Regulation
To quote the pertinent portion of LION CITY’s Articles of Incorporation, it
“That the primary purpose for which such corporation is incorporated:
To engage in the business of a financing company by extending
credit facilities for any legal purpose to consumers and to industrial,
commercial and/or agricultural enterprises, by direct lending, secured or
unsecured, by discounting of factoring commercial papers or accounts
receivable, by sales finance, by buying and selling contracts, lease, chattel
mortgage or other evidence of indebtedness, or by financing or operating
leasing of movable and immovable property, and real estate mortgages;
money market trading operations; and, in furtherance of the above
purposes, to undertake the collection of commercial papers, accounts
receivable, negotiable instruments, letters of credit and other evidence of
Provided that the corporation shall not solicit, accept or take
investments/placements from the public neither shall it issue
It must be noted that acquiring a primary registration with the Commission as a
financing company is not a license or authority to solicit investment from the public
because it only grants juridical personality to the corporation and to operate within its
purpose only but does not authorize it to issue, sell, or offer securities for sale nor to
undertake investment activities without acquiring a prior registration and/or
secondary license approved by the Commission.
Based on the information gathered by the Commission, LION CITY offers a pure
passive income of Ten Percent (10%) interest or more per month supported by a
Notarized Memorandum of Agreement and Investment Contract and secured with postdated checks.
These investments shall be used allegedly for real estate, foreign exchange,
casino financing, and buying and selling cars among others, that are not within the
purpose by which LION CITY was established.
The public is advised to exercise caution in dealing with any individuals or group
of persons soliciting investments for and on behalf of LION CITY or any entities engaged
in solicitation activities guised as financing companies.
Those who act as salesmen, brokers, dealers or agents of LION CITY in selling or
convincing people to invest in the investment scheme being offered by these entities
including solicitations and recruitment through the internet may likewise be prosecuted
and held criminally liable under Section 28 of the SRC and penalized with a maximum
fine of Five Million pesos (P5,000,000.00) or penalty of Twenty-one (21) years of
imprisonment or both pursuant to Section 73 of the SRC.
Also, those who invite or recruit others to join or invest in such venture or offer
investment contracts or securities to the public may incur criminally liability, or
otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the
case of Securities and Exchange Commission vs. Oudine Santos (G.R. No. 195542, 19
Furthermore, the names of all those involved will be reported to the Bureau of
Internal Revenue (BIR) so that the appropriate penalties and/or taxes be
Should you have any information regarding any investment solicitation by any
individuals or group of individuals representing LION CITY, please call the Enforcement
and Investor Protection Department (EIPD) at telephone number (02) 8818-6047 or
send your report to the EIPD at email@example.com
For the guidance of the public.
Pasay City, 22 October 2019.