SEC warns public vs operation of alleged scam hub in Cebu

A police line seals the entrance of the alleged scam hub in Barangay Kasambagan, Cebu City, as a show-cause order is posted following an inspection by a joint task force. | CDN Digital File Photo

CEBU CITY, Philippines — The Securities and Exchange Commission (SEC) has released an advisory warning the public about the alleged operation of a scam hub here.

In its advisory, SEC said that BMJ Data Processing Services, that operates in Brgy. Kasambagan in Cebu City, is not authorized by their office to solicit any investments.

“The  public is advised that BMJ DATA PROCESSING SERVICES is not  registered with the Securities and Exchange Commission (SEC) and is therefore not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investment as prescribed under Section 8 of the Securities Regulation Code (SRC),” read part of the advisory dated May 28, 2025.

SEC, however, said that the company is registered under the Department of Trade and Industry (DTI).  But this does not give them the authority to secure investments from the public.

“The public is further advised NOT TO INVEST or to  STOP INVESTING in the investment scheme being offered by the subject entity or its representatives,” it added.

Penalty

Those who will act as salesman, brokers, dealers or agents for BMJ Data Processing Services in soliciting investments “may  be  held  criminally liable under Section 11 of the Financial Products and Services Consumer Protection Act (FCPA) and Section 28 of the Securities Regulation Code (SRC).”

Such an offense is punishable with a maximum fine of P5 million or imprisonment of 21 years or both pursuant to Section 73 of the SRC.

Moreover, SEC is reminding business entities “to  ensure full compliance with all applicable laws, rules, and regulations, particularly those related to investment solicitation and financial services,  to  prevent  their  operations  from  being  misused  for  fraudulent  schemes  such  as  boiler  room activities.”

 “Likewise, building  administrators,  property  managers,  and  lessors are  reminded  of  their responsibility to exercise due diligence in screening prospective tenants and to regularly monitor ongoing operations  within  their  premises.  This  includes  verifying  the  legitimacy  of  businesses  occupying  their spaces and reporting any suspicious or unauthorized activities to the appropriate authorities. Vigilance and cooperation from both business firms and facility administrators are essential in safeguarding the integrity of the industry and protecting the public from fraud,” it added.

Viral scam hub

BMJ Data Processing Services went viral after YouTube blogger @mrwn posted a video exposing their alleged illegal operations.

On May 20, authorities served a show-cause order, citing their lack of a business permit.  A search warrant was also served on May 27 which led to the confiscation of computer sets.

According to the SEC, call center agents of BMJ Data Processing Services introduce themselves as financial representatives from a group called Virtual Wealth Exchange.

The alleged scam targeted victims with a promise of easy money through Bitcoin trading using a system called “Quantum AI.”

Agents allegedly posed as financial advisors, employing what SEC labelled as “boiler room” operations which involved high-pressure sales tactics and emotional manipulation. The agents would also present false claims of being licensed in Africa to gain the trust of their targets.

Victims were persuaded to deposit a minimum of $250 with the promise of high returns, free mentoring, and fast withdrawals—none of which were substantiated with real proof of legitimacy.