The Securities and Exchange Commission (SEC) has issued separate advisories warning the public against transacting with unauthorized online lending platforms Bridge Cash and JCPRIME Non-Specialized Wholesale Trading who both have been illegally using the identity of a legitimate financing company.
In an announcement, SEC disclosed that Bridge Cash, which is accessible through Bridge Cash website, was found to be an unregistered investment scheme promising high monthly returns and misrepresenting itself as affiliated with legitimate financing firm First Digital Finance Corp. (FDFC).
It cited that Bridge Cash was not owned, operated, authorized or endorsed by FDFC, which denied any association with the unauthorized website.
“Bridge Cash falsely used the company’s corporate name, SEC registration information and business address to create the appearance of legitimacy and regulatory authorization,” it pointed out.
On the other hand, the SEC noted that JCPRIME was not legally registered with the commission and did not possess the secondary license required to offer or sell securities or investment contracts to the public under the Securities Regulation Code.
The commission informed the public that the lending website offered the investment scheme that bore the characteristics of a Ponzi scheme, in which funds from new investors are used to pay supposed returns to earlier participants.
It was learned that JCPRIME, allegedly operated by Jomar Burgos Robale and Carla Marice Robale, was enticing investors with promises of seven percent monthly returns. However, the investment fraud, including Ponzi schemes, is prohibited under Republic Act 11765 or the Financial Products and Services Consumer Protection Act.
The SEC emphasized that only financing and lending companies registered with the SEC and operating through properly disclosed and recorded online lending platforms were authorized to conduct online lending activities.
“Fraudulent online lending schemes often use legitimate company names, fake endorsements and misleading claims of SEC affiliation to deceive borrowers. So we are advising the public not to transact with the platform or provide personal and financial information, identification documents, banking credentials or payments related to supposed loan processing fees,” it said.
It likewise warned that individuals acting as promoters, recruiters, agents, influencers or endorsers of the investment scheme may also face criminal liability, with penalties of up to ₱5 million in fines or imprisonment of up to 21 years under the Securities Regulation Code and the Financial Products and Services Consumer Protection Act.
“The public to verify registered financing and lending companies and authorized online lending platforms through the SEC website and the SEC’s Check App before making financial transactions at https://sec.gov.ph. The iMessage portal within the SEC website may also help by accepting complaints and inquiries, including reports on illegal investment solicitations and harassment from online lending platforms,” the commission concluded.