SEC Sues Emgoldex (aka Global Intergold) Over Investment Scam

The Securities and Exchange Commission (SEC) steps up its campaign against Emgoldex (also known as Global Intergold), an alleged Dubai-based investment company that offers gold to its investors and promises hefty returns.

SEC also filed on Friday, November 6, two cases before the Department of Justice against related entities EmGoldex, Global Intergold (GIG), and Prosperous Infinite Philippines Holdings, Corporation (PIPHC).

The companies are accused of violating Section 8 and 28 of the Securities and Regulation Code (SRC), for selling or offering for sale or distribution unregistered securities to the public and without a license, respectively.

Each violation of the SRC is punishable, upon conviction, with a fine of not more than P5 million ($106,484.92) or imprisonment of 7 to 21 years, or both.

The entity which allegedly employed the Ponzi scheme was EmGoldex, but after the SEC issued the advisory against it, it renamed itself to GIG. PIPHC was also incorporated sometime in August 2015 to aid and assist GIG investors who were unable to obtain a return on their investment.

The filing of the cases and the issuance of a CDO by the SEC are results of months of investigation.

Based on the SEC investigation, EmGoldex has been inviting Facebook netizens to invest in its “Pinoy Style Patak-Patak” scheme which promises huge returns for their investment.

Under the scheme, an investor that will put up P1,000 ($21.30) is promised to earn profits from P5,000 ($106.50) to P10,000 ($212.99), while a placement of P35,000 ($745.48) will yield P180,000 ($3,833.54) to P360,000 ($7,668.25).

To date, EmGoldex has been banned in other countries based on international media reports. .

“One of the two PNP officials invested in EmGoldex in desperation after his house burned down early this year,” SEC noted.

EmGoldex has recruited at least 95 investors who made an estimated P2,718,400 ($57,899.65) cash investment. The estimated return loss is at least P11 million ($234,391.64).

“These entities operate a classic Ponzi scheme of getting cash investments and giving high return payouts through [recruiting people]. As more people are recruited into the scheme, it eventually reaches a point wherein it can no longer sustain its payouts, and payments will stop, thereby leaving investors penniless,” said Lalaine Monserate, assistant director of the SEC’s Enforcement and Investor Protection Department (EIPD).

Thus, SEC challenged the following suspects to face the public and be accountable for their actions.

• Kevin Miranda
• Ryan Manuit
• Charles Juiz Padilla
• Rabel Ymas
• John Rafael Calicdan
• Paul Alviar

“SEC’s primary mission is to protect Filipino investors, including OFWs that fall victim to these investments scams,” said Herbosa. She stressed that the commission is ready to receive and assist victims, including OFWs, with their affidavits.

A petition to charge members who recruit online has been also submitted to SEC’s office.

A group of 15 from Quezon City said they have a list of more than 1,000 people who were aggressively recruiting through Facebook in the last 12 months. The group want to file complaints against the said people.

/Joy Valle/

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