SEC FLAGS INVESTMENT GROUP WHITE DRAGON FOR ILLEGAL SCHEME

August 26, 2023 Metro BLISTT

BAGUIO CITY

Government regulator Securities and Exchange Commission (SEC) is warning the public against dealing with White Dragon Investment Group after finding out it is soliciting investments without
necessary permits. According to the SEC, White Dragon claims to be engaged in various business
sectors, such as real estate development, food and beverage, franchising, leisure and gaming services, poultry and egg, and other private investments, where prospective investors are guaranteed a 36% annual or 3% monthly profit for a minimum investment amount of Php100,000.00.

This entity’s investment schemes or actions resemble a pyramid/Ponzi scheme, where investors earn through recruitment fees instead of the sale of actual products/ services, and investors are
paid using the contribution of new members, the SEC said. According also to SEC, White Dragon is not registered with them and the securities in the form of investment contract that it is offering to the public are likewise not registered in violation of Sections 8, 26 and 28 of the Securities Regulation Code.

SEC cited that the Financial Products and Services Consumer Protection Act also prohibits investment fraud which is defined under the law as any form of deceptive solicitation of investments form the public which includes Ponzi schemes and such other schemes involving the promise or offer of profits or returns sourced from the investments or contributions made by the
investors themselves and the offering or selling of investment schemes to the public without a license.

It warned those who act as salesmen, brokers, dealers or agents of White Dragon vis-àvis Justin Arvin Santos Atendido in selling or convincing people to invest in what appears to be an
investment scheme being offered by said entity including solicitations and recruitment through the
internet may be prosecuted and held criminally liable under Section 28 of the SRC and Section 11 of the FCPA and for the two offenses both penalized with separate maximum fine of Five Million
pesos (Php5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.

Artemio A. Dumlao/ABN