Senator Robin Padilla filed Senate Bill 2889 aimed to protect celebrity endorsers from being dragged into illegal investment scams.
This after Neri-Naig Miranda was arrested for alleged syndicated estafa and violations of the Securities Regulation Code. Neri was later released upon the order of the Court.
In his bill, Padilla said:
“Recent events reveal a growing concern for the welfare of endorsers whose names are dragged into various investment scams. Oftentimes, they are the first ones to be accused of crimes related thereto just because their names and faces were made prominent by companies who secured their services as endorsers,” he said in his bill.
“This measure seeks to offer protection to endorsers by providing mandatory provisions into their engagement agreements that will clearly define not only their obligations but more importantly, their relationship with the company and their noninvolvement in any sale of investment contracts and securities if the latter is engaged in such business,” he added.
The bill further indicated the following:
“In the event that the business or venture is engaged in the sale of investment contracts or other securities, there must be a clear prohibition on the part of the endorser to engage in the promotion or sale thereof with an expectation to receive profits or commissions if the same is not a licensed broker.
Businesses or ventures engaged in the sale of investment contracts and other forms of securities shall refuse to accept investments obtained through the efforts of any endorser if the same is not a registered broker.”
(Photo source: Instagram – @Robin Padilla)
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