Investing in ‘Pluggle’? Read This SEC Warning First

pluggle3
Source: Pluggle

Pluggle is earning a lot of buzz via Facebook and other social networking channels lately. Not in any way connected or affiliated with Google, Pluggle promises a faster way to get double or triple return of your Php1,000 investment.

The Philippines’ Securities and Exchange Commission (SEC) has issued a public advisory on October 11, warning the public to take extra caution when investing or dealing with Pluggle or its representatives.

“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with PLUGGLE, INC. or its representatives,” said the SEC’s Enforcement and Investor Protection Department in its advisory.

The SEC noted that while Pluggle is registered with the corporate watchdog, the company is …

… not authorized to solicit investments from the public as it has not secured the necessary license or permit from the Commission as required under Section 8 and 12 of the Securities Regulation Code (SRC).

Known as an “advertising” website, Pluggle requires members to sign up on its website through a sponsored link. The members will then be asked to purchase an activation code worth Php1,000 through their accounts or using bitcoin or through legitimate members or leaders.

On its Facebook page, Pluggle promises a return of 30% to 100% in 12 days to its members through six (6) ways, according to the SEC.

Upon registration, a Pluggle member will earn P100, the company claims. Then P100 will be earned every time a member logs in; P60 per log-in of other investors recruited (downlines); P100 for every person sponsored to join the system; P400 for one pair in each level down to the 10th level; and, P100 for every pair in the binary structure.

The corporate watchdog also noted that dealers, brokers and agents of Pluggle Inc who convince other people to invest or solicit through the internet …

… may be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code (SRC) and penalized with a maximum fine of Five Million pesos (Php5,000,000.00) or a penalty of Twenty One (21) years imprisonment or both pursuant to Section 73 of the SRC.

There will be similar penalty imposed for people (not dealers) who invite or recruit other people to join or invest on the Pluggle investment scheme…

… may be held liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC v Oudine Santos (G.R. No. 195542, March 19, 2014).

 The SEC has further advised that the Philippine Central Bank does not intend to endorse the use any virtual currency such as bitcoin. Bitcoins are neither issued or guaranteed by the Bangko Sentral ng Pilipinas (BSP) nor backed by any commodity.

In a BSP memorandum quoted by the SEC, the central bank said it aimed to regulate virtual currencies when used for the delivery of financial services, particularly for payments and remittances, which have material impact on anti-money laundering and combatting the financing of terrorism, consumer protection and financial stability.

 

 

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