The Securities and Exchange Commission (SEC) has issued a warning against an entity called Hero Mining/Hero Mining international Group, which is soliciting investments through its social media platform and its own independent websites.
According to the SEC, investors are being offered earnings ranging from P1,000 up to P144,905, as well as 60 percent from the profit of their successful recruit or invited friends.
Investors are likewise enticed to earn anywhere from 10 percent up to 240 percent through staking for one week up to three months.
The SEC said an “investment contract” exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, which is prominent in the scheme of Hero Mining.
SEC said the entity is not registered as a corporation or partnership and it operates without the necessary license to solicit, accept or take investments from the public nor to issue investment contracts and other forms of securities.
“Further, the scheme employed by Hero Mining shows indication of a possible Ponzi Scheme where monies from new investors are used in paying fake profits to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the SEC said.