THE SECURITIES and Exchange Commission (SEC) has issued an advisory against JRL Kwarta Trading Co., cautioning the public that the entity has been soliciting investments without the required registration or license.
In a Feb. 9 advisory, the corporate regulator said verification through Messenger on the flagged entity’s verified Facebook page showed it offering investments with a P30,000 minimum placement, a one-year lock-in period, and 10% monthly interest.
“In the said messenger communication, JRL KWARTA TRADING CO., has provided the name and bank account number of a certain representative wherein the investment money is to be deposited,” the SEC noted.
The commission said these arrangements fall under the definition of an investment contract, which must be registered and authorized under the Securities Regulation Code (SRC).
Under the SRC, an investment contract exists when money is placed in a common enterprise with the expectation of profits primarily from the efforts of others.
“The public is hereby informed that JRL Kwarta Trading Co., is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the SRC,” the SEC said.
It added that the company’s chief executive officer (CEO) also holds no certificate of registration as an associated person, compliance officer, salesman, or certified investment solicitor for relevant securities entities.
The regulator advised the public to avoid or stop investing in the scheme, warning that those acting as promoters, recruiters, or agents may face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC, with penalties of up to P5 million or 21 years’ imprisonment, or both.
In May last year, operatives from the Philippine National Police Anti-Cybercrime Group and the SEC arrested five JRL Kwarta Trading Co. employees during an entrapment operation at their office in Pangasinan.
“In a 26 Aug. 2025 decision of the Pangasinan Regional Trial Court, Branch 56 upon submission of a Plea of Guilty, rendered judgment against the arrested employees of JRL Kwarta Trading Co., guilty for violation of the provisions of the SRC,” the advisory read.
In January this year, its chief executive officer was arrested under a warrant issued by Regional Trial Court Branch 77, First Judicial Region, San Carlos City, Pangasinan, for syndicated estafa and related charges under the Revised Penal Code, the Cybercrime Prevention Act, and the Financial Products and Services Consumer Protection Act.
“For those who have been victimized by the investment scheme being offered by JRL Kwarta Trading Co., and its CEO, you may file your formal complaint before the Commission’s Enforcement and Investors Protection Department (EIPD),” the commission noted.
JRL Kwarta Trading Co. did not immediately reply to a Facebook message seeking comment. — Alexandria Grace C. Magno