Caution Against JTRADE FX Unauthorized Investment Solicitations

The Philippines Securities and Exchange Commission (PH SEC) urgently informs the public about the activities of JTRADEFX / JTRADEFX FOREIGN EXCHANGE SERVICE. This entity, not authorized by the SEC, has been actively soliciting investments, particularly through social media.

JTRADEFX advertises various investment plans on its website and social media platforms, promising significantly high returns in short periods. The plans include:

1. Micro Account: 35% interest in 7 days.

2. Mini Account: 90% interest in 15 days.

3. Standard Account: 210% interest in 30 days.

Investments are collected through a specific Union Bank account, as provided by JTRADEFX.

The SEC's investigation reveals that JTRADEFX's offerings are classified as “investment contracts” under the Securities Regulation Code (SRC). Such contracts require a secondary license from the Commission, which JTRADEFX lacks. Initial checks confirm that JTRADEFX is not registered with the Commission as a corporation or partnership. Although JTRADEFX holds a Certificate of Business Name Registration from the Department of Trade and Industry, this does not authorize the company to offer or sell securities.

The scheme operated by JTRADEFX is identified as a “Ponzi Scheme,” a fraudulent system that pays returns to earlier investors using the capital of newer ones. This model is unsustainable and primarily benefits its top recruiters, posing a significant risk to later investors. The business model does not involve any legitimate means of profit generation, relying solely on the influx of new investors and the supposed trading expertise of JERALD BAWAAN, JTRADEFX's CEO.

Ponzi schemes are destined to fail, as they lack a sustainable method of generating income. When the flow of new investors dries up, such schemes collapse, leading to significant financial losses for participants. The SEC emphasizes that such schemes, being fraudulent and unsustainable, cannot be registered as securities, and entities involved in these practices will not be granted licenses.

Furthermore, investment fraud, including Ponzi schemes and other misleading tactics, is prohibited under the Financial Products and Services Consumer Protection Act (FCPA). Individuals who engage as JTRADEFX salespeople, brokers, agents, promoters, or recruiters may face legal consequences, including jail and penalties.

The public is strongly advised not to invest in JTRADEFX or similar entities. Caution is urged when dealing with individuals or groups promoting such investment schemes. Investing in unauthorized and unregistered schemes can result in significant financial loss and legal complications.

Related News:

PH SEC Warns Against HOUSE OF FOREX Investments

Beware of unauthorized investment solicitation by HOUSE OF FOREX & H. FLORES CONSULTANCY. Philippines SEC warns of potential fraud and Ponzi schemes. Stay vigilant!

News 2023-12-04

相关内容

For further information and guidance, the public is encouraged to contact the SEC directly. The Commission remains committed to protecting investors and maintaining the integrity of the financial market.