SEC flags 2 firms for solicitation schemes

THE SECURITIES and Exchange Commission (SEC) has issued an advisory against Avante Consortium OPC and Opulent Skin Co OPC, warning the public over unauthorized investment solicitation activities.

The regulator said it is investigating the companies after reports surfaced of investment offers being promoted on social media without the required secondary license.

Both firms have been marketing investment programs that promise unusually high, short-term return, the SEC said.

These include a “Flash Program” offering a 15% rebate in three days, as well as schemes advertising returns of 44% to 88% within 12 to 21 days, along with affiliate commissions and other incentives.

“The records of the commission show that Avante Consortium OPC and Opulent Skin Co OPC, although registered as a one-person corporation with the commission, do not possess the necessary secondary license… hence, are not authorized to solicit investments from the public,” the SEC said.

The commission said the schemes might qualify as investment contracts under the Howey Test and as securities under the Securities Regulation Code, requiring prior regulatory approval before offering to the public.

It also warned that people involved in promoting or facilitating the investment offers — including recruiters, endorsers, influencers and agents — could face criminal liability.

Violations of the Securities Code and related laws carry penalties of as much as P5 million in fines, imprisonment of up to 21 years, or both.

The SEC urged the public to be cautious of investment offers promising guaranteed or unusually high returns within short periods, particularly those circulated through online platforms.

Avante Consortium OPC did not immediately respond to a request for comment sent via Facebook, while no publicly available contact details could be found for Opulent Skin Co OPC. — Alexandria Grace C. Magno