MANILA — Authorities have issued a warning to residents of Surigao City and Dinagat Islands over a questionable investment scheme being promoted by JFunds Business Center.
The Securities and Exchange Commission – Butuan City Extension Office (SEC-Butuan) confirmed Friday that the entity is not registered with the commission and is unauthorized to offer or sell securities.
According to SEC-Butuan, the scheme exhibits hallmarks of a Ponzi setup, where returns are paid from new investors’ funds rather than actual profits. Early participants, often top recruiters, benefit, while later investors face losses when new recruits dwindle.
Reports indicate that JFunds has been active in local communities, coordinating with government units and advertising events down to the barangay level. Local influencers reportedly promoted the venture, attracting attendees with free meals and giveaways, including five kilograms of rice per participant.
SEC-Butuan documented several orientation events, including Feb. 8 at Semtoco in Surigao City; Feb. 28 at Kulyamihan, Barangay Poblacion, Cagdianao; and March 1 at Jacquez Gym in Barangay Jacquez, San Jose, Dinagat Islands. Gatherings start with praise and worship before introducing an investment opportunity, with suggested contributions ranging from PHP5,000 to PHP1 million and promises of 7.5% weekly returns or 30% monthly.
“The structure of this investment mirrors prior high-yield schemes, similar to the notorious KAPA Community Ministry International,” SEC-Butuan said, referencing a financial scandal that defrauded millions of Filipinos.
The agency warned that anyone promoting or recruiting for JFunds could face criminal charges under the Financial Products and Services Consumer Protection Act and the Securities Regulation Code.
elamigo/
