ROXAS CITY, Capiz, Aug.7 (PIA6) – The Department of Trade and Industry (DTI) – Provincial Office is reminding the public not to join investments that offer “easy money,” “double your money” and “quick money” which are beyond the existing profits in banks.
“If the investment will earn by recruiting other people and not by selling valuable products, this is a concrete example of a pyramid scam or pyramiding,” said a DTI news release distributed to various local media outlet.
Pyramiding is generally characterized by people earning primarily from the act of recruiting other people who pay significant registration fees to join the pyramid scheme.
People who sign up and make the investment in the form of registration fees then try to recoup their investment by recruiting other people into the scheme by enticing them to make similar venture, according to the the DTI reminder.
The scheme earns profits primarily from participant’s entry fees and the income is dependent on the participants position within the organization rather than the ability to sell the products or services.
DTI provincial director Ermelinda P. Pollentes said that a company that offers an investment product must be registered with the Securities and Exchange Commission (SEC) aside from the mandatory statutory requirements to operate a business.
Failure to secure the requirements, any investment activity is unauthorized. (JCM/AAL/PIA6 Capiz)
