The Securities and Exchange Commission has cautioned the public against Fidelity Capital Investment Group (FCIG), saying it is not authorized to solicit investments.
The SEC said that FCIG has been conducting unauthorized investment schemes, mainly advertised through various online platforms, and enticing the public to invest in its supposed “FCIG-YEPBIT Investment Trading Project”, promising high-yield returns with a minimum investment of 500 US dollars…in its trading platform called Yepbit, with passive income received twice a day.
“This scheme constitutes clear violations of sections 8, 26, and 28 of the Securities Regulation Code (SRC), and the Financial Products and Services Consumer Protection Act. The public is strongly reminded that an investment contract, which is a form of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived primarily from the efforts of others,” the SEC advisory said.
Under the SRC, the offer and sale of securities must be registered with the SEC, and the issuing entity and its agents must possess the appropriate registration and license to offer and sell such securities to the public, it added.
The SEC database shows that FCIG is not registered as a corporation or partnership, and is operating without the necessary license or authority to solicit, accept, or take investments from the public, nor to issue investment contracts or any forms of securities as defined under Section 3 of the SRC.
“The scheme employed by FCIG, i.e., recruiting new investors, bears the attributes of a Ponzi scheme, wherein money from new investors is used to pay ‘profits’ to earlier investors,” the SEC stressed in a recent statement. “Such schemes are designed to benefit top recruiters and early participants, to the detriment of subsequent participants once new investors become scarce.”
Promises of high returns in a short period of time are characteristic of fraudulent investment activities, including Ponzi schemes, which derive payouts from incoming investments rather than legitimate business activities, the SEC said. “The public is strongly advised not to invest in any scheme being offered by individuals or groups representing or promoting FCIG.” ||
