SEC accuses Dermacare of running Ponzi scheme, criminal complaints filed against officers and endorsers

The Securities and Exchange Commission (SEC) in the Philippines has accused Dermacare of running a Ponzi scheme. The company promised investors a guaranteed return of 12.6% every quarter for five years, using funds from new investors to pay earlier ones. SEC officials stated that Dermacare's investment scheme failed the Howey test, which determines if an investment contract is legal. The SEC revoked the company's registration, citing it lacked the necessary licenses to solicit investments. Criminal complaints have been filed against Dermacare's officers and endorsers, including celebrities Neri Miranda and Rufa Mae Quinto. They are accused of promoting the scheme despite the company not being registered to offer investments.