Acting upon a number of complaints over unpaid motorcycle loans in the Visayas and Mindanao areas, the Securities and Exchange Commission (SEC) has issued a warning against the “8K Motor Agad” scheme and similar schemes promoted by some groups or motorcycle clubs.
In an advisory dated June 17, 2019, the public is hereby warned against such activities by The Philippines Good Samaritan Riders Association (TPGSRA)/ The Good Samaritan Riders Club.
According to the advisory, the SEC had received information that the TPGSRA has been soliciting investments from the public disguised as donations.
How it works is similar to pyramid schemes where the “topline” will try to recruit two downlines. Then those two will recruit more downlines after them. Each new recruit is requested the same PhP8,000 initial investment in exchange for a brand new motorcycle (through financing) and the promise of paying for that motorcycle loan up to 36 months.
Though the SEC confirmed that the group is registered in their database as a corporation under the Corporation Code of the Philippines, the TPGSRA is not authorized to offer, solicit, sell or distribute any investment/ securities. Those who act as sellers, brokers, dealers or agents on behalf of the TPGSRA selling or convincing people to invest in their group will be held criminally liable with imprisonment of up to 21 years and PhP5-million fine.