Sy-led holding company SM Investment Corp. yesterday issued a notice that distanced itself and its affiliates from Websites that has been asking for solicitations online.

In a letter to the exchange, Executive Vice-President Jose T. Sio said neither SM Investments nor its affiliates were connected to SMFund.com, sminvestment.com, and other inline solicitation Web sites.

Accordingly, the SM Group of Companies is not responsible for the contents of the SMFund.com, sminvestment.com Web sites and it shall not be liable directly or indirectly for any damaged cause or claim to be caused by the use of or reliance on any such contents.The notice read.

The SMFund.com Web site claims it is a “premier financial service,Meanwhile, sminvestment.com Web site is currently under construction.

“We are building model portfolios using the quantitative analysis based on historical market data. The current research is scheduled to be completed in the second half of 2006. Early in 2007 we plan to have the first result posted, it read.

The Securities and Exchange Commission has warned the public against five entities allegedly involved in Internet-based ponzi investment schemes, director for compliance and enforcement department Hubert B. Guevara said.

In a letter for Mr. Guevara said the SEC has received reports that Francswiss, Swiss Cash, Universal Forex System, Global America, and Private Forex Trade, Inc. are not registered with the commission and have no permit or authority to solicit investments. In the case of Privet Forex Trade, it has been misleading the public by showing a fake SEC certificate of registration on its Web site.

“The public is therefore urged to report any offer of investment made by persons who represent the above-mentioned entities or other entities using similar modus operandi… in order that the appropriate enforcement action can be taken,he wrote.

Some of the features of an internet -based  ponzi investment scheme are: no SEC registration, offers or guarantees a huge profit in a very short period, no paper trail, promises little or no financial risk, and assures payoff of investments in a short time. An investor cannot touch the investment and the perpetrators have unknown principal office addresses, founders, directors or officers.

Orientation seminars are conducted informally. High pressure methods are used to convince investors. It uses a big binary network such as upline and downline to earn commission.

“This investment scheme ordinarily collapses as fast as they are created while leaving its investors behind and unable to recoup their investments,Mr. Guevara said.

The ponzi scheme was named after an Italian immigrant who defrauded American investors in the 1920s. Under the scheme, old investors are repaid through funds contributed by the new investors. The compliance and enforcement department has a mission “to create a culture of compliance through effective, efficient and fair enforcement of laws.