Parang LS KBS? SEC Issues Advisory Against BG Wealth Sharing Ltd., Warns of Ponzi Scheme

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The Securities and Exchange Commission (SEC) of the Philippines has issued an advisory against BG Wealth Sharing Ltd., warning the public that the entity is not authorized to solicit investments in the country. According to the regulator, the group exhibits patterns of a Ponzi scheme and may constitute investment fraud.

The Scheme

According to SEC Butuan’s investigations, individuals are soliciting investments for BG Wealth Sharing Ltd., an entity allegedly founded by Canadian national Professor Stephen Beard. The group reportedly targets overseas Filipino workers (OFWs), encouraging them to both invest and promote the platform to others.

“Promoters claim that BG Wealth Sharing Ltd. is being established locally and has been operating abroad since 2022. These representations are used to downplay allegations of fraud while promising unusually high investment returns, despite the entity operating without registration or authority from the SEC.”

Securities and Exchange Commission

The regulator explained that representatives are inviting recruits to use DSJ Exchange, a trading platform featuring a copy-trading tool for cryptocurrencies. Despite the inherent volatility of the crypto market, the scheme promises a 1.3% daily compounded interest on a minimum investment of $300 (approximately ₱17,000).

The SEC classifies this arrangement as an investment contract because it involves the placement of money in a common enterprise with a reasonable expectation of profits derived primarily from the efforts of others. Under the Securities Regulation Code (SRC), such contracts are considered securities and require a primary registration for the security itself and a secondary license for the entity.

“The public is hereby informed that BG WEALTH SHARING LTD. is NOT REGISTERED with the Commission and is NOT AUTHORIZED to offer, solicit, sell, or distribute any investment or securities in the Philippines.”

Securities and Exchange Commission

BG WEALTH SHARING LTD. is Ponzi Scheme: SEC

The Commission declared that the entity’s operations bear the hallmarks of a Ponzi scheme, where funds from new investors are used to pay “profits” to earlier participants. The SEC emphasized that these schemes are fraudulent, unsustainable, and designed to benefit top recruiters at the expense of subsequent investors.

Furthermore, the SEC noted that the scheme may violate Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act. This law prohibits deceptive investment solicitations and the offering of investment products without the necessary permits.

“The public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by BG WEALTH SHARING LTD. as well as any other entities having the same or similar schemes.

Securities offered through a Ponzi scheme are not registrable, and the SEC does not issue licenses to entities engaged in such activities.”

Securities and Exchange Commission

Warning to BG WEALTH SHARING LTD. Representatives

The SEC issued a stern warning to those acting as salesmen, brokers, dealers, or agents for BG Wealth Sharing Ltd. Individuals soliciting investments or recruiting investors online for the group may be held criminally liable under Section 28 of the SRC. Penalties include a maximum fine of ₱5 million, imprisonment of up to 21 years, or both.

Comparative Analysis in Relation to LS-KBS Exchange Scam

The patterns observed in this case mirror the LS-KBS Exchange scam. In 2025, BitPinas investigated the LS Team Network, which enticed members to use KBS Exchange—a platform that used fake trading signals to promise returns of 100% in 45 days.

Read the whole report here: LS KBS Crypto Scam? Exchange Halts Withdrawals, Tells Members to Keep Quiet

In both instances, local groups encouraged the use of a specific exchange disguised as a legitimate crypto trading platform to guarantee fixed returns. The SEC issued a similar advisory against LS KBS earlier this year, declaring those entities unauthorized to sell securities

A promise of fixed returns remains a major red flag, especially given the volatile nature of the web3 and cryptocurrency markets.

Worth Reading: SEC Issues Advisory Against LS KBS; Declares Entities Unauthorized to Sell Securities

A promise of fixed returns despite the crypto market being volatile is a popular scam in the Philippines.

If you fell as a victim, here is BitPinas’ guide on what to do: What to Do If You Are a Victim of Crypto Scams Like LS KBS / AUX Exchange

This article is published on BitPinas: Parang LS KBS? SEC Issues Advisory Against BG Wealth Sharing Ltd., Warns of Ponzi Scheme

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