SEC warns public vs investment solicitation online

The Securities and Exchange Commission (SEC) has issued a warning about RU Affiliates, a group soliciting investments from the public online. It all started when the Commission has received several information that individuals or group of persons representing RU Affiliates are enticing the public to invest in the said entity through online. Based on the information communicated to the Commission, RU Affiliates sells a so-called “IHX Factor” worth R1,599, an online training course consisting of 11 videos on how one could recruit or sponsor more downlines into their network marketing business, how to sell products online effectively, and how to promote traditional business. For those who purchased the said training course, a so-called “Top Secret System” will be available for free. The said system will enable its users to promote the business online and execute three compensation plans that will make its members earn a million in a short period of time. Under the Direct Commission plan, the member will earn R1000 for every person he or she refers into the system, while the shared Commission plan will give the member a commission worth R200 for every three referrals. As for the Goodwill Commission plan, every three referrals will give the member’s upline as much as R400 incentive while his or her downline who is next in line for the commission will also earn R400. A member may recruit by posting on his or her social media account or website using a referral link that redirects to the sign up page of RU Affiliates. (MBM)