July 24, 2024

Spotipay is gaining attention for all the wrong reasons, inviting investment through unauthorized music-streaming promises.

The SEC has flagged Spotipay, an unregulated entity persuading the public to invest for high returns from music streaming.

  • Spotipay is reportedly headed up by Fritz Mangalindan Sandiang-Abay.
  • The caution was issued on June 25, 2024. The company and CEO are making headlines for alleged fraudulent activities on social media.

Significance: This caution sheds light on the risks of investing in unsanctioned entities. It calls the public’s need for astuteness to avoid falling for financial frauds. [Further reading: As SEC Alert Goes Out, Metamax Event in PH Cancelled, Encourages Investors to Stop Social Media Postings]

Spotipay Investment Structure:

  • Investment packages: Basic at Php1,500 and Premium at Php5,000
  • Proposed returns: 35% in 7 days or a whopping 250% in 45 days
  • Referral commission: Between 10% to 12.5%

Operating procedure: Investors sign up on the Spotipay portal, choose a subscription package, and deposit the investment amount by various methods.

  • The scheme promises to earn profits just by listening to music.

The current situation:

Spotipay FIGURE - Investors Yet to Be Paid

  • Scrutinizing social media shows a private Facebook group named “Victims of Spotipay Scam” with a membership of 1.4k. Founded on March 24, 2024.

Spotipay, as the SEC brings out, does not have a legal registration as a corporation or as a business partnership.

  • Important to note that it doesn’t have a license to legitimately solicit, accept, or invite investments.
  • The rising trend of such unregulated investment schemes is worrying for the SEC. Scammers are exploiting different platforms to trap the unsuspecting public promising high and quick profits.
  • Promising high returns with minimal effort are standard tactics of possible Ponzi schemes, where returns are essentially paid from new investments, rather than actual profits.

Ultimate pointer: the SEC advises the public to steer clear of investing in Spotipay and similarly unauthorized entities. Ensure to check out the legitimacy of any investment opportunities with the proper authorities in order to protect one’s finances.

More reading: Previously, SEC together with several fintech companies in the country issued warnings against the unregistered METAMAX ASIAN INC./METAMAX, stating it was unauthorized to solicit investments being a Ponzi scheme.

Frequently Asked Questions

What is Spotipay?

Spotipay is an unregistered entity that has been flagged by the SEC. It falsely claims to offer investments with high returns through music streaming.

Why has Spotipay been marked as a scam by the SEC?

Spotipay is considered a scam by the SEC as it operates without proper authority. It promises high returns but lacks the necessary licenses to solicit, accept, or take investments from people.

What are the risks of investing in such unregistered entities like Spotipay?

Investing in unregistered entities like Spotipay can lead to significant financial loss. They often employ tactics such as Ponzi schemes where the returns are not from profit but new investments, leading to unsustainable operations and eventual collapse.