Philippines SEC Flags 'Gaincloud' for Unauthorized Investment Solicitation and Ponzi Scheme

The Securities and Exchange Commission (SEC) of the Philippines has issued a public warning against Gaincloud International Financial Holdings OPC and individuals promoting its investment scheme, warning that the entity is not authorized to solicit investments.

According to the SEC, reports indicate that a group led by Jonathan Pumarez has been actively promoting Gaincloud through social media, enticing the public with promises of high returns—10% in 24 days for investments ranging from ₱500 to ₱5,000, and 30% in 24 days for amounts between ₱2,000 and ₱200,000.

The Commission confirmed that Gaincloud has not secured the necessary registration or license to offer securities. Moreover, the scheme bears hallmarks of a Ponzi structure, where funds from new investors are used to pay supposed profits to earlier participants, primarily benefiting top recruiters and prior risk takers. Such schemes are unsustainable and fraudulent.

The SEC emphasized that investment contracts structured as Ponzi schemes are not registrable securities and warned the public to refrain from investing in Gaincloud or engaging with its representatives.

Individuals acting as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abetters, and enablers for Gaincloud may face criminal liability, with penalties of up to ₱5 million or 21 years imprisonment, or both.

BrokersView Reminds You

Investors are urged to remain vigilant against online schemes promising unrealistic returns. Always verify the legitimacy of any investment offer.

If you suspect investment fraud, you can Submit a Complaint to BrokersView.