May 29, 2024

A group representing itself as financiers for VIP clients in casinos was flagged by the Securities and Exchange Commission as an illegal investment scheme.

The group, which goes by the names Financing International-Casino/Casino VIP Financing by Cathlyne Papasin, Casino VIP Financing, and/or Fortune Dragon Casino Financing, solicits investments by promising that for a minimum of P100,000 and a maximum of P5 million investment, an investor will earn a monthly interest of five to seven percent.

Another group identified as International VIP Financing and International VIP Financing PH which solicits investments through the Internet employs a similar scheme. The difference is VIP Financing and International VIP Financing PH promises a passive income of four percent monthly interest for investments worth P100,000 to P400,000 and five percent monthly interest for investments worth P500,000 to P5M.

The SEC said the administrator of the Facebook account of International VIP Financing and International VIP Financing PH is the same person who became subject of a 2019 advisory about unauthorized solicitation of investments.

Investments in these groups will reportedly be used in casino financing through an authorized agent or financier working for VIP clients who join junkets in different casinos.

As assurance that the scheme is legit, investors will be issued a notarized investment contract or memorandum of agreement signed by their “boss” and post-dated checks as proof of investment.

The SEC said the group is not registered as a corporation or partnership and is not authorized to solicit investments.

The SEC warned that those acting as brokers, salesmen, dealers, or agents will also be prosecuted.

Names of those involved will also be reported to the Bureau of Internal Revenue for assessment of corresponding taxes.  

The SEC has advised the public to be cautious when dealing with entities promising large interests.

For information regarding investment schemes, contact the SEC Enforcement and Investor Protection Division, the SEC Baguio office at Newtown Plaza Hotel, or email a report at [email protected]. – Rimaliza A. Opiña