The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION (“PhilHelp”), 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 not to invest or stop investing in any investment scheme offered by the said entity, its representatives or any entities engaged in schemes which promises ridiculous rates of return with little or no risks.
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 has received information that individuals or group of individuals representing PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION (“PhilHelp”) are offering loans to the public and enticing them to invest their money with the entity with the promise of monetary rewards or profits.
PhilHelp (with website: https://www.philhelp.net/) is engaged in the so-called “Peer-to-Peer Lending” and operates a P2P Funding Platform or virtual marketplace where borrowers and lenders purportedly meet and interact directly. Through said platform, PhilHelp offers and extends different types of loans (personal loan, fast loan, palengke loan and insta loan) to borrowers. On the other hand, through PhilHelp’s facility, investors/lenders sign up and deposit/contribute money to be pooled by PhilHelp to fund these loans and in turn, receive returns on their investments.
Further, the company has a scheme where a lender is entitled to a guaranteed interest/profit of a total of 180% (30% monthly for 6 months).
- Minimum capital = Php2,000.00;
- Maximum capital = Php5,000,000.00;
- The amount invested will be locked-in for six months;
- Receive 30% interest per month for five months and on the sixth month, the capital will be given back with interest;
- Earn 5% for direct referrals;
- Earn 1% for indirect referrals;
- Encashment every Thursday and Friday for weekly referral commissions; and Payout Friday the following week.
2k - up to 2nd level
5k - up to 5th level
100k - up to 10th level
500k - up to 15th level
5M - up to 20th level
Thus, the lending activity of PhilHelp is a circumvention of the Lending Company Regulation Act of 2007 which requires that those engaged in the business of lending must be a corporation and must secure a Certificate of Authority to Operate as a Lending Company.
Further, the solicitation of investments by PhilHelp through the pooling of funds from various “lenders” to accommodate the intended loan amounts of the borrowers, where the lenders earn interest just by placement of money, involves the offering and sale of securities in the form of investment contracts.
Since said scheme involves the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered with the Commission and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public pursuant to Sections 8.1
and 28.1 of the SRC.
Records of the Commission show that PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION (“PHILHELP”) is not registered either as a corporation or as a partnership. However, PHILHELP ADMINISTRATION OF FINANCIAL MARKETING has been issued a Certificate of Business Name Registration on 10 September 2020 by the Department of Trade and Industry with Business Name No. 2155990 under the name of its President, Mr. REYNALDO PAMEN. Nonetheless, PhilHelp is not authorized to
solicit investments from the public as it did not secure prior registration and/or license to solicit investments from the Commission as prescribed under Section 8 of the Securities and Exchange Commission.
Further, PhilHelp is also NOT REGISTERED either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.
Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, the Lending Company
Regulation Act and such other laws, rules and regulations enforced by the Commission.
Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such of PhilHelp in selling or convincing people to invest in the investment scheme being offered by said entities including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million pesos (Php5,000,000.00) 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 criminal 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 March 2014).
Further, 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 correspondingly assessed.
In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION and exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION.
Should you have any information regarding any investment solicitation by any individuals or group of individuals on behalf of PHILHELP ADMINISTRATION OF FINANCIAL MARKETING/PHILHELP INTERNATIONAL LENDING CORPORATION, please send your report to the ENFORCEMENT AND INVESTOR PROTECTION
DEPARTMENT at firstname.lastname@example.org.
For the guidance of the public.
Pasay City, 17 September 2020.