THE Securities and Exchange Commission (SEC) is warning the investing public against unauthorized Reposco Trading Ltd., which is said to be run by Benjamin Mari Limjap.
Reposco Trading was flagged for its Ponzi-like scheme, where investments of new investors are used to pay off prior investors.
“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme,’ which is fraudulent and unsustainable, is not a registrable security,” the SEC said in its advisory.
Reposco Trading also goes by Reposco and Reposco.IO. It apparently uses blockchain technology for its investment plans.
Investors are promised weekly dividends through investments in sports arbitrage, foreign exchange, and oil options. Mr. Limjap has lured investors by guaranteeing returns of 20% within a 90-day maturity period.
“All investments will allegedly be tagged as Reposco dividends and profits earned will be used to reinvest in the funds and to repurchase tokens, thereby guaranteeing that the portfolio’s value grows consistently,” the SEC advisory said.
Reposco Trading is not registered with the commission either as a corporation or a partnership and it is not registered as a crowdfunding intermediary or funding portal.
It also does not have the license to solicit investments from the public as required under the Securities Regulation Code.
The SEC said that those involved in the operations of Reposco Trading may be held criminally liable, and calls on the public to report information about Reposco Trading for investigation. — Keren Concepcion G. Valmonte