SEC Flags Down S&C Shamai Cloverleaf Group of Companies, Camacho Trading for Unlicensed Investment Schemes

Edited by Nathaniel Cajuday

• In another dose of SEC Advisories, the Commission has suspended S&C Shamai Cloverleaf Group of Companies Inc., and Camacho Trading for persuading the public to make investment requests, which are required by law to be licensed.
• S&C Shamai Cloverleaf Group of Companies, Inc., consisting of Shamai Best Food Hub, Shamai Burger, Shamai Best Pizza, Clover Leaf Realty Development, Clover Leaf Administration of Financial Marketing, Broom Broom Express, and Shamai Tech Computer Trading, encourages people to invest a minimum of ₱10,000.00 for a promise of receiving a guaranteed return of 10% to 25% interest per month.
• Meanwhile the Commission notes that Camacho Trading’s offer qualifies as an investment contract, which is a kind of guarantee. Potential investors can put in any amount as there is no minimum investment fee, and in return, Camacho Trading promises 10% ROI per month.

In line with their ongoing efforts to protect Filipino investors from fraud and bad actors in the industry, the Securities and Exchange Commission (SEC) recently issued advisories on two investment schemes, namely S&C Shamai Cloverleaf Group of Companies Inc., And Camacho trade.

According to the Commission, these two entities involved the public in illegal investment solicitations, as neither had obtained the necessary permits or documents to do so. The watchdog also notes that the entities attract the public with a high rate of return on their initial investment, with most of their advertising on social media networks.

S&C Shamai Cloverleaf Group of Companies, Inc.

According to SEC counsel, S&C Shama Cloverleaf Group of Companies Inc. owned and operated by certain Glaiza Gutierrez Lopez and Conrad Velasco Hue.

They allegedly have several subsidiaries and affiliated entities, all of which encourage the public to invest a minimum of ₱10,000.00 for the promise of receiving guaranteed interest returns of 10% to 25% per month:

• Shamai’s Best Food Hub
• Syamai Burger
• Best Shamai Pizza
• Cloverleaf Realty Development
• Cloverleaf Leaf Finance Marketing Administration
• Express Sweep
• Shamai Technology Computer Trading

The Commission notes that the group’s express cargo delivery service, Broom Broom Express, offers a guaranteed return of 25% monthly interest—for a renewable six-month period—with a capital of ₱89,000.00.

While Shamai Tech offers a minimum capital of ₱10,000.00 for interest rates ranging from 10% to 25% for short term investments of either 30 or 45 days. Shamai Best Food Hub also offers a co-franchise program, promising a guaranteed 15% monthly interest.

“The public is hereby notified that S&C SHAMAI CLOVERLEAF GROUP OF COMPANIES INC., including its subsidiaries/affiliated companies mentioned above are not authorized to solicit investment from the public, do not have prior registration and/or license to sell securities or solicit investment as specified in Section 8 of the Securities Regulation Code (SRC),” Commission wrote.

Camacho trade

The SEC notice stated that this entity branded itself as a business involved in the supply of newspaper packaging, trading imported Korean newspapers for use in wrapping vegetables, fruit, dried fish, flowers, and more.

However, the company continues to accept investment. Potential investors can put in any amount as there is no minimum investment fee, and in return, Camacho Trading promises 10% ROI per month.

Consequently, the Commission notes that Camacho Trading’s offer qualifies as an investment contract, which is a type of guarantee. As specified by the Securities Regulatory Code (SRC), the entity offering such securities must be properly registered with the SEC, and the entity concerned and/or its agents must have the appropriate registration and/or license to sell such securities to the public.

“Based on the Commission’s database, CAMACHO TRADING IS NOT REGISTERED as a corporation or partnership and OPERATING WITHOUT THE REQUIRED LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public or issue investment contracts and other forms of securities prescribed under Section 3 of the Code of Securities Regulations ,” the SEC stated.

Therefore, the public is advised not to invest or stop investing in investment schemes offered by Camacho Trading, S&C Shamai Cloverleaf Group of Companies Inc., and their representatives.

In addition to financial literacy campaigns and public advice on SEC initiatives to stamp out illegal investment taking activities, the Commission also recently released a draft version of the implementing rules and regulations (IRR) of the Consumer Protection of Financial Products and Services Act (Republic Act 11765) which will impose stricter penalties on scammers and Ponzi schemes.