by Jan Michael Carpo, Reporter
The Securities and Exchange Commission (SEC) has recently issued a warning to the public advising them to exercise caution when dealing with investment holding company Winvest, particularly with its founder and CEO, Darwin Sarte, as well as with any individuals or groups of people purporting to speak for it.
In a media advisory, the SEC said that the business claims to profit through Binance Futures Trading.
A quick check of its website reveals that Winvest is offering the general public two types of investments that can be made with as little as US$500 up to US$100,000 capital per account.
For a period of 14 days, the firm is guaranteeing earnings of up to 3.5%. In addition to the high returns, investors are also encouraged to earn extra through its ‘Direct Referral Bonus’ and ‘Unilevel Bonus.’
In light of this, the SEC emphasized that Winvest’s offers took the form of an “investment contract,” which arises whenever funds are invested in a group company with the reasonable expectation that they will generate profits via the efforts of others.
The Commission, therefore, said that in accordance with the Securities Regulation Code (SRC), businesses that offer investment contracts must be properly registered, and businesses that wish to sell securities to the general public must be properly registered and/or licensed.
Winvest is not registered as a corporation or as a partnership
According to SEC’s database, WINVEST has neither been registered as a corporation nor as a partnership.
Therefore, the commission emphasized, “it is NOT AUTHORIZED to solicit investments from the public as it has not obtained any prior registration and/or license from the Commission as required by Sections 8 and 28 of the SRC.”
Additionally, according to the SEC advisory, “It should be emphasized that the method being used by the organization is unmistakably a Ponzi Scheme — a kind of scam that entices investors and pays gains to earlier investors with money from more recent participants.”
The fraudulent and unsustainable Ponzi Scheme, which was used to offer and sell securities in the form of investment contracts, is NOT a registrable security.
The SEC further noted that “The Commission will not grant a License to Sell Securities to the Public to persons or companies who are involved in such activity or scheme.”
Public urged to discontinue using Winvest and its investment scheme
The Commission has consequently urged the general public to discontinue using Winvest and its investment scheme.
The Financial Products and Services Consumer Protection Law (Republic Act 11765)’s implementing rules and regulations (IRR), which would enable the Commission to impose stiffer penalties on con artists and Ponzi schemes once it is put into effect, were recently released in draft form by the SEC.
Additionally, the Commission has since signed a memorandum of understanding (MoU) with the University of the Philippines (UP) Law Center through the UP Legal Center Research Program to carry out joint research and capacity-building projects that focus on cryptocurrency and financial technology regulation.