The Securities and Exchange Commission (SEC) has ordered CROWD1 Asia Pacific, Inc. to immediately stop soliciting and accepting investments from the public under a scheme disguised as a digital marketing business.
In an order issued on May 12, the SEC also directed representatives of Crowd1, whose corporate name is Crowd1 Asia Pacific Inc., to also “cease their internet presence relating to the transactions and investment scheme covered by this cease and desist order.”
“The Commission will institute the appropriate administrative and criminal action against any persons or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or the like for and in behalf of the subject partnership,” said the order (http://www.sec.gov.ph/wp-content/uploads/2020/05/2020CDO_Case-No.-05-20-064-Crowd1-CDO.pdf).
The Commission’s Enforcement and Investor Protection Department (EIPD) “likewise verified with and secured a confirmation from the Bureau of Internal Revenue (“BIR”) through a Certification that two (2) incorporators of CROWD1 have invalid Taxpayers Identification Numbers. The EIPD already referred25 the matter to the Company Registration and Monitoring Department (“CRMD”) for their appropriate action.”
Under the Securities Regulations Code, a registered company can only solicit securities and other similar investment instruments if they are able to secure a secondary license. A certificate of incorporation (primary registration) does not constitute a license to solicit or accept investments from the public.
The Commission issued the cease and desist order less than three weeks after it raised an advisory on the activities of Crowd1. The order should warn the public that investing in a company that does not have legal personality will always be unsustainable.
Because of the pandemic, the Commission is anticipating financially difficult times ahead. The SEC-Davao Extension Office is reminding the public to protect your hard-earned money so you may have some for future use.
The public is advised to rely only on official sources of information, especially on the legitimacy of certain companies. Advisories against suspicious persons and entities can be found at http://www.sec.gov.ph/public-information-2/investors-education-and-information/advisories-and-notices/.
Those who want to file a complaint against a company or person advertising probable illegal investment schemes must send these complaints to the EIPD at email@example.com or contact them at (02) 818-6337 or (02) 818-6047.
Categories: Press Release