PHSEC Warns: TradeExpert, PIONEX Trading Club Ponzi Schemes

Beware of two investing firms, TradeExpert and PIONEX Trading Club, the Philippines Security Exchange Commission (PHSEC) has sternly warned the public. Both organizations are thought to be running Ponzi schemes, which seriously endanger investors' financial situation.

Alleged Ponzi Scheme of TradeExpert

Led by Angelito Harina, TradeExpert promises to provide a hands-free trading experience by means of a creative trading bot meant to optimize profits while reducing risks. With daily income ranging from 1% to 1.5% and maturities between 10 and 30 days, the firm provides three investment options. TradeExpert also advocates a 12-month compounding interest plan with an apparently amazing rate of 8,538.06%.

The PHSEC has marked these products, in the meantime, as possibly fake. The Commission claims TradeExpert has not obtained the required permits to attract investments and is not incorporated as a company or a partnership. TradeExpert's approach is reminiscent of a Ponzi scheme, in which cash from new investors is paid expected earnings to past investors. Although top recruiters and early investors gain from this system, if fresh money runs out, it is unsustainable and negative for later investors.

The PHSEC underlines that each investment contract needs to be registered and that the organization has to have the right authorization to offer securities. The PHSEC recommends the public not to participate in this program as TradeExpert disregarded these criteria. Those engaged in encouraging or supporting TradeExpert's investments might be subject to criminal responsibility with fines ranging from five million pesos (Php5,000,000.00), up to twenty-one year imprisonment.

Dubious Investment Made by PIONEX Trading Club Provides

Likewise, the PHSEC has expressed worries about the PIONEX Trading Club under CEO Reme Corpuz. With a minimum investment of Php1,000.00, the business attracts investors with promises of great monetary benefits and offers programs claiming to make 3% every day for 30 days or 30% to 75% in 7 to 15 days.

Investigators find that PIONEX Trading Club lacks the required authorization to trade securities and is not registered with the Commission. PIONEX's payback policies resemble those of a Ponzi scheme, in which fresh investor money is sent to past investors in order to pay fictitious gains. Although this unsustainable approach is meant to help top recruiters and early risk-takers, if fresh investments drop, it will seriously jeopardize later members.

Under the Securities Regulation Code (SRC) and the Financial Products and Services Consumer Protection Act (FCPA), the PHSEC underlines that these kinds of scams are dishonest and unlawful. Strong counsel is given to the public to stay away from PIONEX Trading Club investments. Promoters and supporters of these investments might also be subject to harsh fines of up to Five Million Pesos (Php5,000,000.00) and twenty-one-year jail terms.

Public Consultancy

Based on these results, the PHSEC advises people to be careful and diligent in evaluating investment possibilities. Often too good to be true, schemes offering very high returns with no risk might cause major financial losses.

To safeguard investors, the PHSEC will keep them under observation and act against unregistered companies and false investment plans. People are advised to confirm the validity of any investment possibility and notify the Commission of any dubious behavior.

Visit the PHSEC website or phone their hotline for further details. Keep educated and guard your money against bogus enterprises.

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