SEC Advisory: Goldxtreme Not Authorized to Solicit Investments From the Public
The Securities and Exchange Commission (SEC) issued a public advisory dated June 4, 2015, so everyone can take precautions when joining Goldxtreme, a new Philippine-based gold investment company. Many MLM networking people compare the company to Emgoldex, except that Goldxtreme is registered at SEC.
“Per verification, Goldxtreme is registered with the Securities and Exchange Commission as a partnership whose primary purpose is to engage in the business in the wholesale and retail sales of such products as gold jewelry but not limited to products such as fashion accessories, cellphone loads….” The SEC said.
“However, Goldxtreme is NOT AUTHORIZED to solicit investments from the public as it did not secure prior registration and/or license to solicit investments from the Commission as required under Section 8.1 of the Securities Regulation Code.” The SEC added, advising the public to avoid investing money at Goldxtreme.
The SEC noted that the advisory was issued after learning that Goldxtreme Trading Co. is inviting new members to invest P5,000 per slot with the promise of return of investment (ROI) amounting to P24,450 net of taxes, upon exit of each slot in the table, as well as from referrals of new investors.
After doing some research, TN found out that Goldxtreme was registered at SEC on March 6, 2015, and that the company is owned by a certain Rommell Tan, who also poses as the company CEO. Its business address is 2nd floor, Calubad Bldg., 474 EDSA, Caloocan City, and is open every day, 10am – 12 midnight.
Just like SEC mentioned in their advisory, new members of Goldxtreme are required to recruit two individuals for every slot they bought. Similar to Emgoldex, members should reach a certain level before they can “exit” the table to receive the reward.money or gold bar. Members are said to have unlimited “exit” opportunities.
Apparently, Goldxtreme was featured in ABS-CBN’s ‘Kabuhyang Swak na Swak” last April, wherein some members claim they are making good money.In the said episode, a certain Michael Avancena was featured as the top earner for that month. He can be seen with a brand new car as an incentive from the company.
Now, is Goldxtreme scam? We are not saying it is, but the fact that the SEC released this advisory means that it is not allowed to invite new members to invest money. Yes, not all MLM networking companies are scam. However, you should avoid easy-money schemes especially if the marketing plan is too good to be true.