The Securities and Exchange Commission (SEC) has warned the public against investing in an Iloilo-based salon.

In its Dec. 20 advisory, SEC said Salon de Pamplona is “not registered either as a corporation or partnership” and is “not authorized to sell or offer securities to the public in the Philippines, pursuant to Republic Act 8799 or The Securities Regulation Code (SRC).”

The SRC provides that entities seeking to engage in the business of buying or selling securities or as a broker dealer, or seeking to create or operate an exchange for the buying and selling of securities, must secure a secondary license with SEC.

The salon, owned by Ramillo Pamplona Pumbaya, was found to be offering investment slots worth P5,000 to P300,000 allegedly for the expansion of its operations.

In return, investors are promised a return of 15 percent after 30 days.

“The investment scheme of Salon de Pamplona has the characteristics of a ‘Ponzi Scheme,’ promising exorbitant rates of return with little to no risk at all to the investors,” SEC said.

“The Commission will not issue a license to offer or sell securities to the public, to persons or entities engaged in such business or scheme,” it added.

According to SEC, “those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Salon de Pamplona in selling or convincing people to invest in its platform within the Philippines, even through online means, may be held criminally liable under Section 28 of the SRC or may be penalized up to P5 million or suffer imprisonment of up to 21 years, or both.”

In a statement sent to IMT NEWS, Pumbaya said they are now coordinating with SEC to settle the issue.

“Salon de Pamplona is registered [with SEC] and ongoing na ang Pamplona Group of Companies pero may needed pa gid nga lain nga permit for the investment registration,” the owner explained.

“I did not know kasi na separate permits pala yan kahit na tapos na ang investment ko pinaprocess ko nalang para clear na din.”

Salon de Pamplona has nine branches, five of which are operating in Iloilo City and four in Iloilo province.IMT