The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on SGP DRAGON TRADING CORPORATION, warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to take precautions in joining or investing in these groups.
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.
The Securities and Exchange Commission (Hereafter “Commission”) has received information that individuals or group of persons representing SGP DRAGON TRADING CORPORATION (Hereafter “SGP DRAGON”) are offering online investments to the public.
Per records of the Commission, SGP DRAGON is registered with the Commission as a corporation with Company Registration No. CS201952980. It was issued its Certificate of Incorporation on June 6, 2019.
Its primary purpose is: “To conduct and transact any and all lawful business related to the retail, distributing, import, export and trading of food supplement and cosmetics products, perfumes, colognes, hair care products, skin care products, oils, lotions, nail care products, facial care products, body and rejuvenation products, slimming products, beauty enhancement and maintenance products, hygienic and beauty care and other like products and services and to do all acts necessary and related to the exercise of corporate power, within or without the Philippines. “
On July 15, 2019 SGP Dragon’s application for amendment of its secondary purpose was
approved by the Commission as follows:
“To acquire by purchase, exchange, assignment, gift or otherwise, and
to hold, own, and use for investment or otherwise, and to sell, assign,
transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal
in and with and otherwise operate, enjoy and dispose of real and
personal properties of every kind and description and wherever
situated, as and to the extent permitted by law, to invest in other
companies and enter into joint venture agreements with any
company, partnership, persons or government entities, domestic or
foreign, for the advancement of its interest, including but not limited
to, shares of capital stock, bonds, debentures, promissory notes, or
other securities or obligations, created, negotiated or issued by any
corporation, association, or domestic entities, and real estate,
whether improved or unimproved, any interest or right therein, as
well as buildings, tenements, warehouse, factories, edifice and
structures and other improvements, and while the owner, holder or
possessor thereof, to exercise any and all rights, powers and
privileges or any other interest therein, except acting as dealer
and/or broker of securities and without engaging in investment
taking activities from public investor.”
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“Provided that the corporation shall not solicit, accept or
take investments/placements from the public neither shall it
issue investment contracts. (Emphasis ours).”
The company claims that the approval of its secondary purpose is the approval of its secondary license.
The public is informed that the issuance of a Certificate of Incorporation only grants the said entity juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC. Hence, its is explicitly stated in the Certificate of Incorporation of SGP DRAGON TRADING CORPORATION that:
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“This Certificate grants juridical peronality to the corporation
but does not authorize it to issue, sell or offer for sale securities
to the public, such as but not limited to shares of stock, investment
contracts, debt insturments and virtual currencies without prior
Registration Statement approved by the Securities and Exchange
Commission; nor to undertake business activities requiring a
Secondary License from this Commission such as, but not limited to
acting as: broker or dealer in securites, government securities eligible
dealer (GSED), investment adviser of an investment company, closeend or open-end investment company, investment house, transfer
agent, commodity/financial futures exchange/ broker/ merchant,
financing/lending company, and time shares/club
shares/membership certificate issuers or selling agents thereof; nor
to operate a fiat money to virtual currency exchange. Neither does
this Certificate constitute a permit to undertake activities for which
other government agencies require a license or permit.
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Based on the information gathered by the Commission, SGP DRAGON entices the public to invest by offering different packages with different earnings ranging from 1.00% to 2.50% per day. Earning rate depends on the package availed. SGP Dragon is a company advocating Foreign Exchange where its coaches and master traders are the ones trading on behalf of the clients with live trades in the investment platform. Interest income can be withdrawn every 15 days on a particular month’s 15th and 30th day. The entire investment scheme is described in detail below:
- The investor will sign up in this website:
- The investor will be asked to fill up the Login Information consisting of the following: User Name and Password; the Personal Information: First name, Last Name and Email address and the Sponsor;
- The investor will then choose the package he/she wants to avail. The different packages are
- The Starter Package – investment ranges from Php1,000 ($20) to Php300,000.00 ($6,000.00) with an earnings of 1.00% to 1.50% per day with a 45-day lock trade and can be withdrawn after the aforesaid period.
- The Trader Package – investment starts from Php301,000.00 ($6,001.00) up to Php3,000,000.00 ($60,000) with earnings of 1.60% to 2.00% per day with a 60-day lock trade and can be withdrawn every 15 days on a particular month’s 15th and 30th day.
- The Master Package – investment is set at Php3,000,000.00 ($60,001) and above with earnings ranging from 2.10% to 2.50% per day on 120-day lock trade and can be withdrawn every 15 days on a month’s 15th and 30th day.
- Other bonuses are as follows:
- Referral Bonus - The investor is entitled to 5% for every person he recruits;
- Pairing Bonus - The maximum income is based on the pairing base plan acquired. Every pairing delivered entitles the investor to a 10% bonus.
- Binary Bonus – The investor shall earn 10% for every successful pairing he made. The Starter maximum pairing is Php40,000.00 a day. In 30 days it will be equivalent to Php1,200,000.00
The Trader maximum pairing is Php100,000.00 a day or Php3,000,000.00 a month.
The Master maximum pairing is Php200,000.00 a day or Php6,000,000.00 per month.
- Positioning Bonus – is a kind of leveling bonus where the investor’s bonus is dependent on the package he/she availed. The mechanics of Position Bonus is based on whether the investor has a Starter, Trader or Master packages. Though the investor’s income is based on the package he/she purchased, this second way allows the investor to grow his/her income and level through his/her total referral commission.
The public is hereby warned that such investment schemes are considered as securities subject to the regulatory authority of this Commission Although SGP DRAGON TRADING CORPORATION is registered with the Commission as a corporation, however, such registration does NOT authorize the company to offer, solicit, sell or distribute any investment/securities. Such activities require a Secondary License from the Commission and the securities or investment product should likewise be registered with the SEC
before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code (SRC).
Likewise, those who act as salesmen, brokers, dealers or agents of these companies 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 Securities Regulation Code 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.
Accordingly, those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).
In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with SGP DRAGON TRADING CORPORATION or its representatives.
Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department at telephone numbers (02) 818-6047.
For the guidance of the public.