The Securities and Exchange Commission (SEC) has issued an advisory warning the public against investing in GAINEXPRESS, an entity soliciting investments online under the direction of an individual named Geronimo Servande.

The commission has identified the operation as an unauthorised investment scheme.

According to the SEC, GAINEXPRESS offers several investment plans through online platforms, promising returns as high as 8% daily profit or up to 270% in 24 days, with minimum investments as low as PHP 500.

The SEC has classified these plans as investment contracts, which are a form of security. Companies must register these securities with the commission before they offer them to the public.

Investigators found that GAINEXPRESS failed to register as a corporation or partnership and that the SEC had not issued the company a secondary licence to solicit investments.

Additionally, the SEC identified the investment scheme as having the traits of a fraudulent Ponzi scheme. The scheme’s operators use money from new investors to pay fake “profits” to earlier ones.

The commission strongly cautions the public not to invest or to immediately cease investing in any scheme offered by GAINEXPRESS or its representatives.

Furthermore, the SEC warned that individuals who act as salesmen, promoters, or influencers for the entity may be held criminally liable under the Securities Regulation Code.

These offences are punishable by a fine of up to PHP 5 million, imprisonment of up to 21 years, or both.

For tax assessment purposes, the SEC will also report the names of those involved to the Bureau of Internal Revenue (BIR).

Featured image by Freepik.