The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on CASHDROP ONLINE STORE ("Cashdrop"), 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 CASHDROP/CASHDROP ONLINE STORE headed by a certain JONATHAN PUENTE, are enticing the public to invest their money in said entity.
As posted online, CASHDROP entices the public to invest online or through the internet by availing either of the following packages and shall be entitled to “double your money or200% return (PAYOUT) in 15 days”.
Accordingly, a member shall only need to invest, wait, and earn without having to do anything. As the above described schemes involved the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are 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 8 of the SRC.
Per records of the Commission, CASHDROP/CASHDROP ONLINE STORE is NOT registered either as a corporation or a partnership. However, CASHDROP ONLINE STORE has been issued a Certificate of Business Name Registration on 03 October 2020 by the Department of Trade and Industry with Business Name No. 2215760under the name of JONATHAN ALBERT NUŇEZ PUENTE. Nonetheless, CASHDROP/CASHDROP ONLINE STORE 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 SRC.
Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such for CASHDROP/CASHDROP ONLINE STORE 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 CASHDROP/CASHDROP ONLINE STORE 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) 8818-6047 or send your reportto the EIPD at email@example.com.
For the guidance of the public.
Pasay City, 24November2020