SAN FRANCISCO, Agusan del Sur — The Securities and Exchange Commission (SEC) Butuan Extension Office has warned the public against falling victim to two emerging investment scams allegedly being run by individuals and groups offering unrealistic profits through bitcoin trading and consumer goods investments.
In an advisory posted by the Philippine Information Agency (PIA) Caraga social media page, the SEC’s Enforcement and Investor Protection Department (EIPD) identified Christabel Arroyo and De Guzman Consumer Goods Trading as entities operating unauthorized and illegal investment schemes that promise fast and guaranteed returns.
The PIA Caraga warning advisory by SEC gives links to the detailed background of the alleged schemes for public awareness.
According to the SEC, Christabel Arroyo, through her Facebook and Messenger accounts, has been soliciting funds from the public for a supposed bitcoin mining and trading business. She allegedly offers investors a chance to earn up to ₱50,000 within 24 hours for a minimum investment of ₱5,000.
Reports gathered by SEC indicate that Arroyo presents her “investment plans” to potential investors and even provides a GCash account number used to collect investment money and distribute payouts.
However, the Commission clarified that Arroyo is not registered or licensed as an investment solicitor, broker, dealer, or agent authorized to sell securities under the Securities Regulation Code (SRC).
“The public is advised not to invest or stop investing in any scheme offered by Christabel Arroyo, as her investment operations are not registered with the Commission,” the SEC said.
Ponzi scheme
The SEC also flagged De Guzman Consumer Goods Trading, which it said is not registered as a corporation or partnership and operates without the necessary license or authority to solicit or accept investments from the public.
According to the EIPD, De Guzman Trading’s investment activities bear the classic traits of a Ponzi scheme—a fraudulent setup where money from new investors is used to pay “profits” to earlier ones.
“This type of scheme is designed mainly to favor its top recruiters and early investors while leaving later participants at a loss once new investors stop coming in,” the SEC explained.
Under the Financial Products and Services Consumer Protection Act (Republic Act No. 11765), any person or entity committing investment fraud, including Ponzi schemes, can face severe penalties.
Criminal Penalties and Liability
The SEC warned that those acting as salesmen, brokers, dealers, agents, promoters, uplines, influencers, endorsers, or recruiters for either Arroyo or De Guzman Trading may be held criminally liable under Section 11 of the FCPA and Section 28 of the SRC.
Violators face penalties of up to ₱5 million in fines, 21 years of imprisonment, or both, as affirmed by the Supreme Court in SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).
Report and Stay Vigilant
The Commission urged the public to exercise extreme caution when dealing with individuals or groups offering “too-good-to-be-true” investment opportunities online.
Citizens with information about the operations of Christabel Arroyo or De Guzman Consumer Goods Trading are encouraged to contact the Enforcement and Investor Protection Department (EIPD) at [email protected] or visit the SEC Headquarters at 7907 Makati Avenue, Salcedo Village, Makati City.
“The SEC reiterates that any investment promising quick and guaranteed profits is a red flag,” the agency said. “Legitimate investments are registered, transparent, and regulated.”
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