The Securities and Exchange Commission (SEC) has issued a stern warning to the public regarding League of Seagull Ltd., also known as Seagull Alliance, stating that the organization is unauthorized to solicit investments within the Philippines and may be operating a fraudulent scheme via a platform called Riscoin.
In a recent advisory, the SEC outlined that the entity has been promoting investment opportunities framed as cryptocurrency copy trading, enticing individuals with promises of significant returns linked to ongoing deposits. The entry threshold for investment was set at $500, or approximately 30,000 pesos.
The regulatory body highlighted that these practices breach several provisions of the Securities Regulation Code (SRC) and the Financial Products and Services Consumer Protection Act (FCPA). Despite claiming a registered status in the United States, the SEC clarified that League of Seagull Ltd. lacks the necessary registration in the Philippines, which is essential for offering or selling securities.
According to the advisory, League of Seagull Ltd. claims to be based in Colorado and allegedly filed its incorporation documents on September 3, 2024. Official records from the Colorado Secretary of State confirm the company”s articles of incorporation, with Ernest Dewey May Jr. listed as the registered agent. However, the SEC emphasized that this U.S. registration does not grant it the right to operate in the Philippines.
The SEC has identified a network of individuals connected to the scheme in the United States, including Charles Hamilton and Martin Collins, who are reportedly involved in various operational and compliance roles.
The scheme appears to have expanded its reach in the Philippines starting September 19, 2024, establishing a social media presence and conducting recruitment activities across several regions, such as Pangasinan, Metro Manila, Central Luzon, Central Visayas, Northern Mindanao, and the Davao Region. In Pangasinan, local promoters known as Team Bagwis Payaman are reportedly pushing the operation, utilizing an office branded as Seagull Alliance Clothing in Pozorrubio, Pangasinan.
The SEC”s investigation indicated that the operation bears hallmarks of a Ponzi scheme, wherein returns for earlier investors are funded by the investments of newcomers, rather than through legitimate business operations. The commission underscored that fraudulent investment solicitations, including Ponzi schemes, are outlawed under the SRC and the FCPA.
Individuals participating as brokers, agents, promoters, recruiters, or social media influencers for League of Seagull Ltd., Seagull Alliance, or Riscoin could face serious legal repercussions. Violating these regulations may lead to fines reaching up to 5 million pesos or imprisonment for as long as 21 years, or both, as stated in Section 73 of the SRC. The advisory also referenced a Supreme Court ruling that supports liability for those involved in recruiting for investment schemes.
The SEC strongly advises the public to refrain from investing in offerings from League of Seagull Ltd. and its affiliates and encourages anyone aware of related activities to report them to the SEC”s Enforcement and Investor Protection Department.
