Davao City strongman, Mayor Rodrigo R. Duterte ordered the Criminal Investigation and Detection Group (CIDG) 11 to stop the operation of an online gold selling company in the city.
Duterte said in an interview on Wednesday afternoon, that he wants to restrain the operations of the company since it has no permit to operate in Davao.
The Mayor was apparently referring to Global Intergold (formerly Emgoldex), and Goldxtreme, which are allegedly recruiting people to join their programs in order to earn from the investment of their recruits.
The Securities and Exchange Commission (SEC) had earlier warned the public against dealing with Emgoldex and Goldxtreme. The former is not registered with SEC, while the latter is operating not in accordance with investment laws.
It issued the warning after finding “bogus SEC public advisories” concerning Emgoldex bearing the SEC logo.
Emgoldex allegedly changed its name to Global InterGold a few months ago.
A third party report said Emgoldex changed it name to Global Intergold after Dubai Officials discovered that the company has forged its alleged DMCC documents in Dubai. Global Intergold operators wanted to distance their business from the dark history attached to Emgoldex name so they changed the business name to GI, the report said.
Duterte said aside from the absence of a permit, the company is not allowed to deal in gold in its operation in order to attract investors.
“You are not supposed to be dealing with gold in the first place. In the second place you do not have a permit,” he said.
Duterte said it is not possible for the company to procure gold because it needs a permit from the Bangko Sentral ng Pilipinas (BSP) first.
“It is a pyramiding thing, I can sense it,” he said. “We will nip it in the bud,” he added.
The National Bureau of Investigation, the BangkoSentral ng Pilipinas, and the Department of Trade and Industry are also investigating Emgoldex’s pyramid scheme.
A cease and desist order had reportedly been imposed on Emgoldex in Massachusetts, USA, and it has reportedly been banned in Finland, Colombia, Estonia, Norway, and Panama.
Dubai officials recently issued warning against investing in the alleged scam company as reported by Gulfnews.
People who try to recruit “investors” in Emgoldex claim that the company is registered in Europe, but a complaint filed by Massachusetts Secretary of State William F. Galvin showed that it is registered in the Seychelles, an island nation off Africa. Armando B. Fenequito Jr.
Emgoldex claims that its main office is located in Germany however, Handelsregister, a public registry of companies kept by local courts in Germany said that Emgoldex is not listed in their registry.
Sources: Edgedavao.net / Carla Gamboa/ Assisted Press
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