SEC re­news warn­ing against Pays­book

Business World - - Corporate News - Arra B. Fran­cia

THE Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) has re­it­er­ated its warn­ing to the pub­lic against in­vest­ing in Pays­book ECom­merce Sys­tem Corp., as it has no li­cense to so­licit such in­vest­ments.

In an ad­vi­sory posted to its web­site, the SEC’s En­force­ment and In­vestor Pro­tec­tion Depart­ment said it re­ceived in­for­ma­tion that Pays­book has been post­ing sev­eral pho­tos on so­cial me­dia of its of­fi­cers ap­pear­ing be­fore the com­mis­sion, im­ply­ing that it has set­tled its is­sues.

This is de­spite an ear­lier warn­ing against Pays­book that the SEC is­sued last Aug. 1, 2018.

“To date, the Depart­ment has not is­sued any or­der lift­ing the Aug. 1, 2018 Ad­vi­sory on Pays­book E-com­merce Sys­tem Co. Ltd. find­ing no suf­fi­cient ground or jus­ti­fi­ca­tion to lift the same. Thus, the gen­eral pub­lic is hereby in­formed that the Ad­vi­sory re­mains valid and in ef­fect,” the SEC said.

The com­mis­sion said that Pays­book’s scheme in­volved en­tic­ing the pub­lic to buy on­line ac­count ac­ti­va­tion codes so they could join its on­line plat­form. From there they could earn by sim­ply log­ging in and out of the web­site, in ad­di­tion to re­cruit­ing other peo­ple into the plat­form.

An in­vestor would have to cre­ate a Pays­book ac­count on pays­, after which he or she will im­me­di­ately earn P300. The ac­ti­va­tion code worth P1,000 will al­low the in­vestor to earn up to P1,200 ev­ery six days for log-in and log-out re­wards.

Mean­while, re­cruit­ing new mem­bers could gen­er­ate com­mis­sions of up to P40,000.

The SEC said Pays­book is a reg­is­tered cor­po­ra­tion whose pri­mary pur­pose is to en­gage in e-com­merce sys­tem ser­vices, on­line sell­ing, on­line ad­ver­tis­ing ser­vices, fran­chises busi­ness, web­site de­vel­op­ment and cus­tom­ized on­line sys­tem de­vel­op­ment.

While a reg­is­tered com­pany, it has not se­cured the li­cense to so­licit in­vest­ments from the pub­lic, which re­quires a sec­ondary li­cense from the com­mis­sion as per the Se­cu­ri­ties Reg­u­la­tion Code. The se­cu­ri­ties be­ing sold must also be reg­is­tered with the SEC.

“To reit­er­ate the con­tents of the Ad­vi­sory, the gen­eral pub­lic is hereby warned that all in­vest­ment schemes are sub­ject to the reg­u­la­tory au­thor­ity of this Com­mis­sion,” the SEC said, not­ing that re­cruit­ing in­vestor mem­bers into the sys­tem is con­sid­ered a form of in­vest­ment so­lic­i­ta­tion or a sale of se­cu­ri­ties.

Those found to be act­ing as sales­men, bro­kers, deal­ers, or agents of such com­pa­nies can be pe­nal­ized with a fine up to P5 mil­lion, or be im­pris­oned for up to 21 years. The names of the peo­ple in­volved in such schemes will also be for­warded to the Bureau of In­ter­nal Rev­enues so their taxes and penal­ties can be as­sessed ac­cord­ingly. —

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