The Securities and Exchange Commission (SEC) has ordered two entities, Uptrade Alliance and Nego Food Solution Corp., to stop offering and selling unregistered securities, citing alleged violations of securities laws.
In separate cease-and-desist orders, the SEC’s Enforcement and Investor Protection Department (EIPD) found evidence that the two entities had solicited investments without the required registration or licenses.
In an order promulgated on Aug. 27, the EIPD directed Uptrade Alliance and those acting on its behalf to immediately stop offering or selling investment contracts and shut down online accounts promoting the scheme.
The SEC said Uptrade Alliance was not registered as a corporation or partnership. Based on the regulator’s online monitoring, the entity offered investment plans starting at P300, P500 and P1,000, with guaranteed returns of 12 percent after five days, 35 percent after 10 days, and 60 percent after 15 days.
It also promised referral commissions ranging from 3 to 5 percent, promoting the scheme through Facebook pages and groups, including claims involving an automated trading bot.
The EIPD classified the scheme as an offering of investment contracts because participants placed money in a common enterprise and expected to earn profits primarily through the efforts of others.
The SEC also said the entity appeared to operate an online platform that purportedly used an “AI Bot Chain” for crypto-asset activities. Investors could deposit funds and follow supposed trading signals or strategies.
