Philippine regulators issued a public warning on May 30th against QZ Asset Management, identifying the unregistered entity as a Ponzi scheme that collapsed by mid-May. The company recruited victims through social media, promising high returns from an online trading platform. These promises proved false, as the scheme paid early investors with funds from new recruits.

QZ Asset Management operated outside the legal framework, lacking registration with the Philippine Securities and Exchange Commission (SEC). This absence of registration rendered all its investment activities illegal securities violations. The scheme’s collapse culminated on May 25th with the company’s website disappearing, leaving investors with substantial losses.

Independent analysis had identified QZ Asset Management as a Ponzi scheme as early as November 2022. The SEC’s official advisory followed complaints filed by local investors who had lost money. The operation appears to be directed by Blake Yeung Pu Lei, a name suspected to be an alias for the leader of a Hong Kong-based group of Chinese scammers.

The fraud extended its reach into the Philippines, where four individuals actively promoted the scheme between March and April 2023. Precious Pria Chiradza, from Botswana, acted as a top-tier ringleader in South Africa. Local promoters Joselito Bantolo Jr., Jervic Ramon Balinggan, and Ruledan Dagsaan recruited victims within the Philippines. Chiradza has reportedly spread false claims online, suggesting her victims are grateful for their losses rather than acknowledging her role in the fraud.

Promoters of such schemes in the Philippines face severe penalties under the law. Convictions can result in fines of up to five million pesos and prison sentences extending up to twenty-one years. The SEC advises the public to cease all contact with QZ Asset Management representatives and refrain from any investment with the company, regardless of how convincing their proposals may seem.