MANILA, Philippines — The Securities and Exchange Commission (SEC) has tapped the the Philippine National Police (PNP) to arrest those engaged in illegal investment activities.

Last month, the SEC’s Enforcement and Investor Protection Department (EIPD) and the police arrested in an entrapment operation individuals behind GDM Finance SARL, a Switzerland-based investment firm.

The company held an investment-solicitation session in Pasig City and enticed participants to purchase or trade stocks, particularly preferred shares in the New York Stock Exchange.

According to the SEC, promoters trumpeted GDM Finance SARL’s guarantee of 2.5 percent to 4.5 percent weekly interest on a member’s investment.

GDM Finance SARL also solicited investments through Facebook, the SEC said.

The commission, however, found that the firm was neither authorized to operate as a lending or financing company nor was it issued any permit to offer or sell securities to the public.

The SEC reminded the public that the unlawful public offering of securities or solicitation of investments is punishable under Section 8.1 of the Securities Regulation Code.

The maximum penalty for such offenses is a fine of P5 million, a prison term of 21 years or both.

Those who publicly solicit investments online may also be found liable for violating the Cybercrime Prevention Act, the SEC said.