JEDDAH, 25 October 2007 — The Philippine Embassy in Riyadh yesterday warned that a new scam called SMFund is targeting overseas Filipinos and their families.
In a press statement, the embassy said the scam was described by the Philippine Securities and Exchange Commission (SEC) as a “fraudulent Internet-based Ponzi Investment Scheme (IPIS)” and has started creeping in Alkhobar.
Contrary to the claims of the scam’s promoters, SMFund is not licensed or registered with the SEC or with the Securities and Futures Commission of Hong Kong, said the embassy, quoting an Oct. 11. 2007 letter from the SEC.
The letter said SMFund claims to be based in Hong Kong but it has no physical operation there and in the Philippines. It said SMFund exists and recruits investors only through its website: www.smfund.com. “SMFund is also misrepresenting itself to be associated with the SM Group of Companies, which is largely known for its large chain of department stores in the Philippines,” said the embassy.
SM Investments Corporation officials have issued a statement saying the SM Group and its subsidiaries are not in any way connected with SMFund.com, sminvestment.com, and any other website asking for solicitations online.
The SEC warned that it has also received reports that FrancSwiss, Swiss Cash, Universal Forex System, Global America, and Private Forex Trade, Inc. are allegedly engaged in IPIS.
It said all such groups are not registered with the commission and have no permit or authority to solicit investments from the public.
Earlier reports said that like other scams, SMFund plays on man’s innate greed and ignorance by offering a very high return of 300 percent upon maturity of 100 days for an investment of $1,000.
The embassy urged the public to report any offer of investment by persons who represent the groups mentioned above or others using similar modus operandi to Juan Victor Fermindoza or Carlos E. Palileo, SEC Examiners, at telephone nos. (632) 727-3188 or via e-mail: [email protected].