SEC warns about unauthorized investment schemes

CEBU CITY, Philippines—Those planning to go into reselling should be cautious in dealing with individuals or groups pitching reseller business partnerships as a front for their unauthorized investment schemes.

The Securities and Exchange Commission (SEC) issued this warning in an emailed press release.

On April 14, 2020, SEC issued separate advisories against JOCALS688 Beauty and Wellness Products Trading, Inc., TBCMMP Masa Mart, Inc. and CashCowRobot for unauthorized solicitation and acceptance of investment.

JOCALS688, which is based in Zamboanga del Sur, entices the public to invest P10,000 to P100,000 with an assured 30 percent monthly return. For an investment of P3,980, a member can receive certain products.

The members can earn through direct selling and the buy-and-earn program as well as the so-called direct referral, pairing and uni-level bonuses.

“Even if there are products involved, the scheme relies heavily on inviting people for a promise of high monetary rewards. Using a referral link, one can recruit a member and earn P500 for every successful registered account,” the commission explained.

Also, the products distributed by JOCALS688 are not registered with the Food and Drug Administration (FDA). Nor does it have a license to operate from the FDA-Center for Food Regulation and Research.

Meanwhile, the TBCMMP Masa Mart offers an investment package of P5,888 in exchange for products worth 75 percent of the amount invested, free annual subscription worth $10 and a $100 investment in The Billion Coin (TBC). Incidentally, SEC had flagged the TBC in a separate advisory.

Members can also earn incentives through the Helping Others Task Program or the 1:5 Helping Formula promoted by Masa Mart by recruiting five persons.

While selling products is another way of earning money in Masa Mart, at least three of the 40 products offered by Masa Mart have been the subject of FDA advisories, the commission revealed.

The company’s investment scheme also offers 30 percent monthly to 2,561.81 percent per annum earnings by paying $25 to $20,000 fee for a subscription to the TBC Cookie Rewards and UMC Masa Coin.

On the other hand, the CashCowRobot offers the public an opportunity to earn as much as P8,000 daily by recruiting more members, completing tasks online and selling digital products.

To join the program, one only has to pay P1,000 for a lifetime membership, for which the investor could receive unlimited referral commissions, pairing bonuses and compensation for selling products and completing tasks online.

Both JOCALS688 and TBCMMP Masa Mart are registered corporations with SEC. But their registrations only grant them juridical personality and do not authorize them to issue, sell or offer for sale securities to the public nor engage in business activities requiring a secondary license from the SEC.

The CashCowRobot, while purportedly registered with the Department of Trade and Industry as CashCowRobot Computer Solutions limits, is not allowed to solicit investments from the public.

Those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes may be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years or both under the Securities Regulation Code.

Republic Act No. 11469, or the Bayanihan to Heal as One Act, further penalizes those participating in cyber incidents that make use or take advantage of the COVID-19 pandemic to prey on the public through scams, phishing, fraudulent emails, or other similar acts with two-month imprisonment or a maximum fine of P1 million or both.

The commission urged the public to report unauthorized investment solicitation activities by email to the SEC Enforcement and Investor Protection Department at [email protected]. /bmjo