SEC Facebook

Based on the information gathered by the Commission
,
the e
n
tity operating
under the name
NEXUS
P
CAPITAL
by
GK
MARKETING LIMITED
,
a company
incorporated under the laws and regulations of
the Marshall Islands, U.S.A.
,
is
engaged in inv
estment
–
taking activities
in the Philippines
which is
NOT
AUTHORIZED
by the Commission.
NEXUS P CAPITAL
promotes
its scheme through endor
sements
on
the
i
nternet
and
transacts investments and other related activities with the public
us
ing
the domain “
www.nexuspcapital.com
.
”
As posted online,
NEXUS P CAPITAL
offers
a number of account types
and
credit token schemes
with corresponding trading benefits
that
promise
lucrative
return of investments
through the use of its
unique
web
–
based
cryptocurrency
and
forex
trading platform
s
provided by
SIRIX
.
To wit
:
NEXUS P CAPITAL
asserts
that its
online trading platforms
are
tailored to
minimize the chances of an unsuccessful trade
and with the given leverage
ratio
of
1:2 to 1:20
for
cryptocurrency trading
and 1:100 to 1:400 for
forex trading
depending
on the chosen package
, investors can expect
large gains
from the minimal
investments
they
deposited
in their margin accounts with the company.
Such
l
everage offered by
NEXUS P CAPITAL
significantly boost the trading
capacity of its investors and
magnifies their profits by
up to Twenty times (20X)
on
cryptocurr
ency trading
and Four Hundred Time
s
(400X)
on
forex trading
.
It must be emphasized that a
L
everage
System
is a powerful tool for
investors because it increases their trading capacity or exposure to any underlying
asset without tying most of their capital.
Essentially, the investor is
only
paying or putting down a fraction of the value
necessary
for the trade
or transaction
and
the rest of the amount is provided or
loaned by his broker or agent
subject to certain fees and/or commissions.
However
, as previously stated in
the
SEC ADVISORY
on
Cyptec
dated
06
April 2020
, companies
also
use the concept of
L
everage
S
ystem
as an investment
strategy to finance their assets
,
business operations and other ventures.
Moreover,
NEXUS P CAPITAL
also uses the
Trading Bonus System
in its
credit token
s
cheme
similar to
Cyptec
which
tends to
prevent its investors from
withdrawing their investments until they
comply with its minimum trade volume
requirement and in case of non
–
fulfillment
, the investors’ credit tokens will be
forfeited
by the company
and any losses incurred
by the investors
will be deducted
from their deposited or invested funds subject to Twenty Percent (20%) withdrawal
fees.
Likewise,
it
s
agents and
representatives will
regularly persuade its investors to
invest more monies in lieu of
high
er returns on deals that sound too good to be true.
In addition,
NEXUS P CAPITAL
also employs policies and agreements that
entails unclear and confusing language or jargon designed to confuse
investors
regarding its actual scheme.
As such, most of its investors suffer losses rather than gains due to the
business methods or
mechanisms
it employed
which show
indications
of a
Ponzi
Scheme
.
Hence,
aside
f
rom
the
se
red flags, it can
also
be gleamed from above that
the
scheme of
NEXUS P CAPITAL
i
nvolves the
offering and sale of securities, in the
form of investment contracts, to the public
which relatively promises steep passive
income for
monies placed on its
compensation packages.
Therefore,
NEXUS P CAPITAL
and/or its agents
are
required to
have
appropriate registration and/or license to sell such securities to the public
and
such
offer and sale of
securities
must be duly registered
with the Commission
as well.
However, per record of the Commission
,
NEXUS P CAPITAL
and its
operator,
GK MARKETING LIMITED
are
NOT REGISTERED
as a corporation or
partnership
with the Commission
and hav
e
NO SECONDARY LICENSE
to solicit,
accept or take investments/placements from the public nor to issue investment
contracts and other forms of securities defined under Section 3 of the Securities
Regulation Code (SRC)
.
NEXUS P CAPITAL
and
GK MARKETING
LIMITED
are
also
manag
ing
their
own digital exchange platform
without proper registration accordance
with
Section 32
of the SRC on the
“
Prohibition on Use of Unregistered Exchange
.”
Seemingly, t
he names
NEXUS P CAPITAL
an
d
GK MARKETING LIMITED
DO NOT APPE
AR
among the registered banks, exchanges or companies engaged
in digital assets with the Bangko Sentral ng Pilipinas (BSP)
as well
in accordance
with
the
GUIDELINES FOR VIRTUAL CURRENCY EXCHANGES
(
BSP CIRCULAR
NO. 944
)
which
requires
all entities
engaged in Virtual Currencies
in the Philippines
to obtain a Certificate of Registration to operate as remittance and transfer company
pursuant to the BSP rules and regulation
s.
Considerately, the
public is advised
NOT TO INVEST
or
STOP INVESTING
in any s
cheme offered by
NEXUS P CAPITAL
and
GK MARKETING LIMITED
or
such other entities engaged in digital asset and forex trading
which are not
registered with the BSP and the Commission.
The public must be aware that the process of trading is highly
speculative and
involves a high degree of risk
, hence, any dubious promise of definite returns is truly
unreliable
.
Thus, the
public must refrain from
investing on
persons
and/or entit
ies
engaged
such
Ponzi Schemes
which
promise ridiculous rates of return
with little or
no risks
.
As previously stated in the earlier Advisories
of the Commission
,
entities
engaged in activities that
defies the normal financial logic or offers “to good to be
true” investment packages or plans tends to disappear shortly after amassing funds
from the public.
Accordingly
, the Commission is
constantly monitoring and overseeing the
matter
in a
way that it
sees as proper
as always
in order to ensur
e the stability of our
financial sector
and to
protect the investing public.
Consequently, the Commission encourages the public to be prudent in
making or placing their monies on persons and/or entities engage
d
in investment
–
taking operations
.
Further,
a
s a warning to unscrupulous individuals or entities that may take
advantage of
our current
crisis, they are informed that
aside from the strict penalties
imposed by the Commission for violations of the
Securities Regulation Code, the
Revised Corporation Code, and such other rules and regulation it enforces
, the
Bayanihan to Heal as One Act
(
Republic Act No. 11469
) also
punishes
those
participating in
cyber incidents that make use or take advantage of the
current crisis
situation to prey on the public through scams, phis
h
ing, fraudulent emails, or other
similar acts
.
In addition, t
hose who act as salesmen, brokers, dealers or agents of
such
unauthorized entities
in selling or convincing people to invest
in the
ir
investment
scheme
offered
including solicitations and recruitment through the internet may
likewise be criminally prosecuted
and penalized with a maximum fine of Five Million
pesos (P5,000,000.00) or
a
penalty of Twenty
–
one (21) years of imprisonm
ent or
both pursuant to Section
s 28 and
73 of the SRC.
In the same manner, t
hose who invite or recruit others to join or invest in such
venture or offer investment contracts or securities to the public may incur criminally
liability, or otherwise be sanc
tioned or penalized accordingly
as held
by the Supreme
Court in the case of
S
EC
vs. Oudine Santos
(G.R. No. 195542, 19 March 2014).
T
he names of all those involved will
also
be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penal
ties and/or taxes be correspondingly
assessed.
Should you have any information regarding any investment solicitation activity
by any individual or group of individuals representing
any entities operating under
NEXUS P CAPITAL
and
GK MARKETING LIMITED
,
please
send your report to the
EIPD at
epd@sec.gov.ph
.
For the guidance of the public.
Pasay City, 2
1
April 2020