SEC warns public against unregistered investment platforms

THE SECURITIES and Exchange Commission (SEC) has issued advisories against Valtoro Spartan, Mad Devpt. Realty Corp., VT Markets, FBS, and KBS, warning investors that these platforms have been soliciting investments without the required registration or license.

In separate notices, the corporate regulator said the flagged entities, including some registered as broker-dealers abroad, operate without the licenses required under the Securities Regulation Code to function as securities dealers or exchanges in the Philippines.

Based on reports gathered by the commission, Valtoro Spartan Consultancy and Valtoro Spartan Trading, registered as a corporation, are soliciting public investments through their website without a secondary license. The firm promotes lock-in subscription plans starting at $50, promising returns from 7.5% to 912.5% depending on the plan selected.

Mad Devpt. Realty Corp., which operates under several business names including Maddev, Madhostel, and Madshostel Siargao, is distributing securities such as shares of stock and non-proprietary shares without SEC approval, the regulator said.

The company invites investments of at least P50,000 for business partnerships, offering shares, dividends, promotional discounts, and annual free accommodation, the SEC said.

VT Markets, operating under several names including VT Markets (Pty) Ltd. and VT Markets Ltd., is not registered as a corporation, partnership, or one-person corporation in the Philippines and lacks authority to sell securities, the regulator said.

The entity operates through mobile apps.

FBS Markets, Inc., FBS Broker, FBS Trading Broker, and FBS Forex Broker Online face similar issues, as they are not registered corporations with the SEC and lack a secondary license to solicit public investments.

The SEC also found that LS, KBS, KBSEX, KBS Exchange, KBSEX Exchange, LS KBS Crypto Trading, LS Crypto Currency Humanitarian Org. Cebu, and SDX Exchange (KBS) were offering securities without the required corporate registration or secondary license.

“KBS represented itself as a bitcoin exchange which operates a mobile application that supposedly serves as a ‘trading platform for humanitarian missions.’ It allows its users to invest and trade unregistered investment products through the platform, with a promise of daily income and humanitarian benefits,” the SEC said in a statement on Friday.

The commission advised the public to exercise caution when dealing with unregistered online investment platforms and their representatives.

It warned that anyone selling or promoting these platforms in the Philippines, including through online channels, may face fines of up to P5 million or imprisonment of up to 21 years.

Representatives, brokers, agents, promoters, influencers, or enablers could also be held liable under the code, the regulator said.

VT Markets and FBS did not immediately respond to separate e-mails seeking comment, while Valtoro Spartan, Mad Devpt. Realty Corp., and KBS do not have publicly available contact information. — Alexandria Grace C. Magno