Peso Korner

Peso Korner

Friday, August 28, 2015

SEC Warning to Recruiters, Sellers and Offerors of Unregistered Securities

For the nth time, the Securities and Exchange Commission has released another advisory against continuous investment scams in the country in spite of their effort to curb these illegal activities. 

It is really so disappointing because the investors are aware of the danger they are facing, they are just blinded by the promise of huge returns. Out of desperation, they are still holding on that they will get rich fast as promised by their recruiters. They only cry foul once victimised and the cycle goes on and on.

The last time I shared about a SEC Advisory on Facebook, one investor even commented that the owners of the company are already fixing their issues with the SEC and of course the investors believed them. As if it's that easy. 

How to assess if a company is engaged in a pyramiding scam or not? If the earnings are primarily through recruitment and not the product, then it is a scam.  You have to understand that the earning  the uplines are enjoying are coming from the investment of the downlines, so once this stops, once the investors start to dwindle, most of the downlines will not have their money back. 

Here's a copy of the SEC's advisory:

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