The Securities and Exchange Commission (SEC) has warned the public against the illegal investment scheme of mobile application Lele Gold Farm/ Lele Gold Coin/ Gold Farm.
In an advisory, the SEC told the the public not to invest or to stop investing in the plans being offered by Lele Gold Farm/ Lele Gold Coin/ Gold Farm and its representatives.
The mobile application was found offering users the luxury of earning while playing the games.
According to the SEC, investors are being offered the option to choose from any of the six types of investment plan (farm land) ranging from P3,840 to P288,000 with the promise of P11,520 weekly earnings to P345,600 monthly income.
However, the SEC said Lele Gold Farm/ Lele Gold Coin/ Gold Farm is not registered as a corporation or partnership and it operates without the necessary license and authority to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities.
The SEC characterized the scheme employed by the mobile application as a Ponzi Scheme, where money 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.
