PH SEC Warns Against HOUSE OF FOREX Investments

The Philippines Securities and Exchange Commission (PH SEC) has issued an advisory to alert the public regarding the unauthorized solicitation of investments by HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES. The SEC has uncovered reports and gathered information indicating that individuals or groups are enticing the public to invest in the said entity through various social media platforms.

HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES, as advertised on its website and social media accounts, claims to be engaged in the trading of foreign exchange currencies. It offers several investment plans with varying minimum investment amounts. The SEC wishes to emphasize that these offerings constitute a solicitation of investments from the public.

The investment options presented by HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES are as follows:

1. Basic Trader: 30% interest on investment for 30 days.

2. Bronze Trader: 40% interest on investment for 30 days.

3. Silver Trader: 50% interest on investment for 30 days.

4. Gold Trader: 50% interest on investment for 25 days.

5. Platinum Trader: 50% interest on investment for 25 days.

6. VIP Trader: 60% interest on investment for 25 days.

7. 10% Commission based on the total deposited amount by a referred person.

Additionally, the company offers 10% commissions on the total deposited amount of a referred person.

The SEC wants to make the public aware that these investment offerings resemble “investment contracts,” which are a type of security. Such contracts involve the investment or placement of money in a common enterprise with an expectation of profits primarily derived from the efforts of others, a key feature found in the scheme of HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES.

In accordance with regulations, securities must be registered with the SEC before they can be offered and sold to the public. Furthermore, the entities involved in soliciting investments must possess the appropriate registrations and licenses as required by the Securities Regulation Code (SRC).

Records maintained by the SEC reveal that neither HOUSE OF FOREX nor H. FLORES BUSINESS CONSULTANCY SERVICES are registered as corporations or partnerships with the Commission. Additionally, these entities have not obtained the necessary registrations or licenses to solicit investments from the public, as mandated by Sections 8 and 28 of the Securities Regulation Code (SRC).

Consequently, the actions of HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES, in offering unregistered securities to the public under the guise of an investment contract, are considered fraudulent and are in violation of Sections 8, 26, and 28 of the Securities Regulation Code.

The Financial Products and Services Consumer Protection Act (FCPA) clearly defines deceptive solicitation, such as offering or selling an investment scheme to the public without a secondary license or permit from the Commission, as investment fraud. This is an unlawful activity as per Section 11 of the FCPA.

Moreover, the structure employed by HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES exhibits characteristics of a “Ponzi Scheme.” In such schemes, funds from new investors are used to pay “fake profits” to earlier investors. This model primarily benefits top recruiters and initial risk-takers, ultimately harming subsequent participants if new investors become scarce.

The SEC underlines that the offering and selling of securities in the form of investment contracts within a “Ponzi Scheme” framework is fraudulent and unsustainable. As a result, the Commission will not provide a License to Sell Securities to the Public to any people or businesses engaging in this sort of business or scheme.

Individuals acting as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abettors, and enablers for HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES who are involved in selling or convincing people to invest in what appears to be an investment scheme offered by these entities, including solicitation and recruitment via the internet, may face prosecution and criminal liability under Section 28 of the SRC and S According to Section 73 of the SRC, both violations incur a maximum punishment of Five Million Pesos (Php5,000,000.00) and a sentence of Twenty-one (21) years in jail, or both.

In light of these findings, the SEC strongly advises the public not to invest in, or cease investing in, any investment scheme promoted by HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES. Furthermore, individuals should exercise caution when dealing with anyone soliciting investments or recruiting investors on behalf of these entities, as well as any other similar schemes.

If you possess information related to investment solicitations associated with HOUSE OF FOREX / H. FLORES BUSINESS CONSULTANCY SERVICES, please report it to the ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT at epd@sec.gov.ph.