The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on LOKAL.PLATE 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 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.
Based on the information gathered by the Commission, a number of individuals or group of persons claiming to represent LOKAL.PLATE CORPORATION (known as “Lokalplate” in social media) headed by Brian James D. So, are enticing the public to invest their money in said entity.
As posted online, LOKALPLATE is offering investments to the public under the guise of franchising where a “franchisee” investsPhp12,888.00 to earnPhp40,000.00 to Php80,000.00 per month.
Further, a franchisee only needs to share a link, which, when clicked by anyone who wants to order from the affiliated food service provider of Lokalplate, the franchisee earns15% to 20% of the purchase price of the ordered food. A franchisee able to recruit another prospect also earns a commission of Php3,00.00 for every direct referral.
Considering that the scheme involves the sale of securities to the public in the form of investment contracts, the Securities Regulation Code (SRC) requires that these securities be duly registered and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public pursuant to Section 8and 28of the SRC.
Per records of the Commission, although LOKAL.PLATE CORPORATION has been registered as a corporationunder Company Reg. No. CS202005888 on 7 August 2020, it is NOT AUTHORIZED to solicit investments from the publicsince it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28of the SRC.
Also, Lokalplate’s primary purpose clause of its Articles of Incorporation does not include “franchising” quoted as follows:
“To engage in online selling of food, and promote, advertise such food products thru online. Provided that the corporation shall not solicit, accept or take investments/placements from the public neither shall it issue investment contracts.”
Further, those who act as salesmen, brokers, dealers or agents or claim to act as such for LOKAL.PLATE CORPORATION in selling or convincing people to invest in the investment scheme being offered by said entity 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 (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 March 2014).
The public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of LOKAL.PLATE CORPORATION and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it. Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department at telephone numbers (02) 8818-6047or send your report to the EIPD at firstname.lastname@example.org.
For the guidance of the public.
Pasay City, 24November2020.