The Security and Exchange Commission or SEC has once again issued a warning statement to the public against the now-dissolved Paysbook E-Commerce System Corp., as it has not been authorized to transact such investments.
According to its official advisory, the SEC was informed of the latest company registration of Paysbook E-Commerce System Corp. with the agency, similar to the objectives of the recently closed Paysbook E-Commerce System Co. Ltd. as an electronic commerce service provider.
Not Cleared by SEC
The SEC’s Enforcement and Investor Protection Department even confirmed that numerous images of the members and affiliates of
The Commission further explained that the Paysbook investment scheme involved urging the public to purchase several online activation codes in order to join the platform. Any interested participant would require to create a Paysbook account, which enabled him or her to receive Php300 instantly upon signing up.
The activation code would cost the investor Php1,000 where he could earn up to Php1,200 every six days by just logging in and out of the platform. Simultaneously, recruiting new members would allow an investor to get a generous commission amounting to Php40,000 depending on the number of recruits.
Until now, the SEC has yet to release any order, suspending the August 1, 2018, public advisory against Paysbook E-commerce System Co. Ltd., as the agency found no sufficient grounds to lift the ban. This only means that the advisory will remain “valid” and “in effect,” according to SEC.
As per SEC registration documents, Paysbook has been registered as a business corporation which specializes in an E-commerce system, customized online system, online selling, business franchising services, and online marketing. However, the registered online company has not secured any valid license to offer investment schemes to the public even though Paysbook has been officially registered. According to the Securities Regulation Code, a secondary license from the commission is necessary before any company can engage in investment schemes or sales of securities.
“To reiterate the contents of the Advisory, the public is hereby warned that all investment schemes are subject to the regulatory authority of this Commission,” the SEC declared. In addition, the recruitment of potential investors to join the system is already considered a legal form of “investment solicitation.”
Such individuals who would act as brokers, agents, and salesmen without any license could be fined up to Php5,000,000 or be imprisoned up to 21 years. The Bureau of Internal Revenue will also assess the tax records of the registered names involved in such online companies, so they can be penalized if needed.
The Securities and Exchange Commission advises the public to validate any start-up business organization from them, particularly the people who are dealing with investment schemes using online platforms.
You may also want to read: