yexel sebastian scam or legit? Reviews and complaints

Introduction

As more people look for ways to generate additional income through investments, scammers prey on unsuspecting victims with promises of quick profits and high returns. One such alleged scam involved Filipino toy collector Yexel Sebastian and his wife Mikee Agustin, who are accused of swindling over ₱200 million from investors. In this post, we’ll examine the details of the Yexel Sebastian scam, signs that an investment opportunity may be fraudulent, and tips to protect yourself from falling prey.

The Yexel Sebastian Scam

According to victims’ reports, Sebastian and Agustin approached individuals starting in 2020 pitching an investment opportunity in their company, Salex Group. Investors were promised generous monthly interest rates of 3-5% with a minimum deposit of ₱1 million or ₱200,000. For over a year, victims received payouts as agreed, gaining their trust.

However, in late 2021 the payments suddenly stopped despite victims’ inquiries. Neither Sebastian nor Agustin could be reached. It’s estimated they scammed at least 100 people out of a total ₱200 million before fleeing the country. Sebastian denies the fraud allegations but his actions, like leaving the country, have damaged his credibility. The Securities and Exchange Commission is investigating while pursuing charges.

Recognizing Potential Investment Scams

Too Good to Be True Returns

Almost without fail, if an investment opportunity promises returns significantly higher than others with similar or lower risk, it’s very likely fraudulent. Legitimate investments averaged around 7-10% annually over many years.

Pressure to Invest Quickly

Scammers may create a false sense of urgency, stressing slots are limited or prices rising. This restricts your ability to properly vet the opportunity. Reputable investments don’t use high-pressure tactics.

Little to No Track Record

When there is no documentation to validate if a company, fund manager or investment strategy has ever successfully achieved the promised returns, tread carefully. This was the case with Sebastian, who had no proven history of managing large sums successfully.

Refusal to Provide Documentation

All legitimate investment firms will readily provide paperwork about the company ownership/structure, financial statements, prospectus with fee details and risk factors upon request. Evasiveness sobre documentation is a major red flag.

Unfamiliar Products

If an “investment” product is overly complex or you’ve never heard of the type they’re pitching, that’s a huge warning sign. Stick with investments you understand.

How to Research Investment Opportunities

Check with Regulators

In the Philippines, verify a company’s registration and license with the Securities and Exchange Commission. Unregistered outfits may be operating illegally.

Review Online Complaints

Search forums, review sites and the Better Business Bureau for complaints against the company or its executives which could imply a history of deception.

Verify Claims Independently

Don’t rely on materials provided – research promotional claims yourself through independent sources. Promised returns should align with third party analyses.

Consult an Advisor

Run opportunities by a registered financial advisor before committing. Licensed pros can assess risk factors and identify suspicious aspects a layperson may miss.

Beware of Fake Awards and Partnerships

Some scammers fabricate prestigious accreditations or business ties that don’t stand up to fact checking. Verify through official sources.

Other tips to Avoid Investment Scams

• Follow the 3-5-10 rule – only invest what represents 3% of total assets in any one position, diversify at least 5 stocks/funds, no more than 10% of net worth in high-risk assets. This limits downside exposure.

• Be leery of “referral” incentives or commissions – most scams involve recruiting new investors to fund payouts to early investors in pyramid fashion.

• Don’t be pressured emotionally by stories of others profiting or fear of missing out. Take time to make rational decisions.

• Consider consulting peers through objective online investment clubs to get additional opinions before committing large sums.

• Report any suspected scams immediately to authorities like the SEC and file a police complaint to aid investigation and protect others.

With diligent research and awareness of common tactics, you can certainly protect yourself from predatory investment frauds. Just maintain a healthy dose of skepticism and trust your instincts over pressure to act.