JDS can’t engage in investment trading

By LITO RULONA
Correspondent

THE Securities and Exchange Commission (SEC) yesterday issued a warning against JDS Prime Trading, saying the firm, now suspected of pulling off a successful Ponzi scheme in the city, has never been allowed to engage in investment trading by the government.

SEC regional director Renato Egypto said this a day after lawyer and Councilor Leon Gan filed a complaint for estafa against the firm’s executives and agents on behalf of some 30 alleged victims.

Egypto said the SEC has brought the matter to the attention of the Department of Trade and Industry (DTI) so that it could start a parallel investigation on JDS, represented by one James Decena Samson, that set up and later closed an office on Yacapin-Rizal streets in this city.

In a letter to the DTI, SEC asked the department to look into JDS’ operations after investors complained that they could no longer locate Samson.

Egypto said the DTI should check because the alleged victims have claimed that the firm used products to lure investors.

“Kung dunay mga gipamaligya, this will fall under the DTI as this is a violation of the Consumer Act,” he added.

Egypto said SEC was also looking into allegations that JDS accepted investments.

“Given these two elements–selling products and accepting investments–it becomes the joint responsibility of the DTI and SEC,” he said.

Egypto said the SEC has long cautioned the public against firms that promise high returns of investment.

Egypto said initial investigation by SEC showed that JDS Prime Trading is neither a corporation nor a business partnership.

“Based on our online database, JDS Prime Trading is not registered with our office, and not allowed to engage in investment trading,” he said.

Gan said the firm promised to return and increase investments by 40 percent in less than a week.

He charged with estafa Samson, and six unnamed office personnel and marketing agents. Samson is reportedly from Quezon City.

Gan said the company closed down its Cagayan de Oro office after collecting not less than P4 million in investments by employing what is believed to be a Ponzi scheme.

Egypto said SEC and DTI have a memorandum of agreement that they would conduct of an investigation into suspected investment scams such as the JDS case.

Egypto said he also asked SEC central office to issue a public advisory against JDS and its owner the moment the DTI states that the firm is not registered.

He called on alleged victims to bring their complaints to the SEC regional office or the DTI.

The Philippine News Agency reported that JDS Prime Trading operated in Cagayan de Oro just this year, promising a 40-percent interest on investments after six days. PNA also reported that the firm collected a membership fee of P500, and offered its members a P100-commission for every recruit.

In Feb. 26, Samson reportedly informed some investors of a supposed robbery that took place at JDS main office in Makati. He allegedly claimed that the robbers carted away some P4 million that included investments.