SGP DRAGON TRADING CORPORATION
SGP DRAGON TRADING CORPORATION is registered with the Commission as a corporation, however, such registration does NOT authorize the company to offer, solicit, sell or distribute any investment/securities.
Posted 02 August 2019

S E C  ADVISORY

            The Securities and Exchange Commission (Hereafter “Commission”) has received information that individuals or group of persons representing SGP DRAGON TRADING CORPORATION (Hereafter “SGP DRAGON”) are offering online investments to the public.

 

Per records of the Commission, SGP DRAGON is registered with the Commission as a corporation with Company Registration No. CS201952980. It was issued its Certificate of Incorporation on June 6, 2019.

 

Its primary purpose is: “To conduct and transact any and all lawful business related to the retail, distributing, import, export and trading of food supplement and cosmetics products, perfumes, colognes, hair care products, skin care products, oils, lotions, nail care products, facial care products, body and rejuvenation products, slimming products, beauty enhancement and maintenance products, hygienic and beauty care and other like products and services and to do all acts necessary and related to the exercise of corporate power, within or without the Philippines. “

 

On July 15, 2019 SGP Dragon’s application for amendment of its secondary purpose was approved by the Commission as follows:

 

“To acquire by purchase, exchange, assignment, gift or otherwise, and to hold, own, and use for investment or otherwise, and to sell, assign, transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal in and with and otherwise operate, enjoy and dispose of real and personal properties of every kind and description and wherever situated, as and to the extent permitted by law, to invest in other companies and enter into joint venture agreements with any company, partnership, persons or government entities, domestic or foreign, for the advancement of its interest, including but not limited to, shares of capital stock, bonds, debentures, promissory notes, or other securities  or obligations, created, negotiated or issued by any corporation, association, or domestic entities, and real estate, whether improved or unimproved, any interest or right therein, as well as buildings, tenements, warehouse, factories, edifice and structures and other improvements, and while the owner, holder or possessor thereof, to exercise any and all rights, powers and privileges or any  other interest therein, except acting as dealer and/or broker of securities and without engaging in investment taking activities from public investor.”

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Provided that the corporation shall not solicit, accept or take investments/placements from the public neither shall it issue investment contracts. (Emphasis ours).”

 

The company claims that the approval of its secondary purpose is the approval of its secondary license.

 

The public is informed that the issuance of a Certificate of Incorporation only grants the said entity juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC.  Hence, its is explicitly stated in the Certificate of Incorporation of SGP DRAGON TRADING CORPORATION that:

 

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“This Certificate grants juridical peronality to the corporation but does not authorize it to issue, sell or offer for sale securities to the public, such as but not limited to shares of stock, investment contracts, debt insturments and virtual currencies without prior Registration Statement approved by the Securities and Exchange Commission; nor to undertake business activities requiring a Secondary License from this Commission such as, but not limited to acting as: broker or dealer in securites, government securities eligible dealer (GSED), investment adviser of an investment company, close-end or open-end investment company, investment house, transfer agent, commodity/financial futures exchange/ broker/ merchant, financing/lending company, and time shares/club shares/membership certificate issuers or selling agents thereof; nor to operate a fiat money to virtual currency exchange.  Neither does this Certificate constitute a permit to undertake activities for which other government agencies require a license or permit.

 

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Based on the information gathered by the Commission, SGP DRAGON entices the public to invest by offering different packages with different earnings ranging from 1.00% to 2.50% per day.  Earning rate depends on the package availed.  SGP Dragon is a company advocating Foreign Exchange where its coaches and master traders are the ones trading on behalf of the clients with live trades in the investment platform.  Interest income can be withdrawn every 15 days on a particular month’s 15th and 30th day.   The entire investment scheme is described in detail below:

 

  • The investor will sign up in this website:

https://www.spgdragon.com/member/register?;

 

  • The investor will be asked to fill up the Login Information consisting of the following: User Name and Password; the Personal Information: First name, Last Name and Email address and the Sponsor;

 

  • The investor will then choose the package he/she wants to avail. The different packages are as follows:

 

  • The Starter Package – investment ranges from Php1,000 ($20) to Php300,000.00 ($6,000.00) with an earnings of 1.00% to 1.50% per day with a 45-day lock trade and can be withdrawn after the aforesaid period.

 

  • The Trader Package – investment starts from Php301,000.00 ($6,001.00) up to Php3,000,000.00 ($60,000) with earnings of 1.60% to 2.00% per day with a 60-day lock trade and can be withdrawn every 15 days on a particular month’s 15th and 30th

 

  • The Master Package – investment is set at Php3,000,000.00 ($60,001) and above with earnings ranging from 2.10% to 2.50% per day on 120-day lock trade and can be withdrawn every 15 days on a month’s 15th and 30th

 

  • Other bonuses are as follows:

 

  • Referral Bonus – The investor is entitled to 5% for every person he recruits;

 

  • Pairing Bonus – The maximum income is based on the pairing base plan acquired.  Every pairing delivered entitles the investor to a 10% bonus.

 

  • Binary Bonus – The investor shall earn 10% for every successful pairing he made.

 

The Starter maximum pairing is Php40,000.00 a day.  In 30 days it will be equivalent to Php1,200,000.00

 

The Trader maximum pairing is Php100,000.00 a day or Php3,000,000.00 a month.

 

The Master maximum pairing is Php200,000.00 a day or Php6,000,000.00 per month.

 

  • Positioning Bonus – is a kind of leveling bonus where the investor’s bonus is dependent on the package he/she availed. The  mechanics of Position Bonus is based on whether the investor has a Starter, Trader or Master packages.

 

Though the investor’s income is based on the package he/she purchased, this second way allows the investor to grow his/her income and level through his/her total referral commission.

 

The public is hereby warned that such investment schemes are considered as securities subject to the regulatory authority of this Commission

 

Although SGP DRAGON TRADING CORPORATION is registered with the Commission as a corporation, however, such registration does NOT authorize the company to offer, solicit, sell or distribute any investment/securities.  Such activities require a Secondary License from the Commission and the securities or investment product should likewise be registered with the SEC before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code (SRC).

 

Likewise, those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in the investment scheme being offered by these entities including solicitations and recruitment through the internet may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or penalty of twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.

 

Accordingly, those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).

 

In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with SGP DRAGON TRADING CORPORATION or its representatives.

 

Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department at telephone numbers (02) 818-6047.

 

For the guidance of the public.