The Securities and Exchange Commission (SEC) has ordered AlphanetWorld Corporation, which has been doing business under the name NWorld, to stop soliciting investments from the public without the necessary license.
In an order issued February 23, the Commission En Banc directed AlphanetWorld to immediately cease and desist from engaging in the unlawful or unauthorized solicitation, offer and/or sale of securities until the requisite registration statement has been duly filed with and approved by the SEC.
AlphanetWorld President Juluis Allan C. Nolasco and its directors, stockholders, officers, representatives, salesmen, solicitors, agents, uplines, enablers and influencers were also ordered to cease their internet presence in connection with their investment scheme.
The SEC likewise directed the company from transacting any business involving funds in its depository banks and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets for the benefit of affected investors.
The SEC issued the cease and desist order after finding that AlphanetWorld has been selling and/or offering investment packages priced from P4,750 to P19,000 in exchange for NWorld products and a guaranteed monthly return of up to P127,000. Business transactions are supposedly made through the company’s official webpage.
Member-investors could also earn discounts of up to 30% for every purchase of NWorld products, referral bonuses, and an additional P25,000 when they meet the 25 pairs of recruits.
The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC.
Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.
“NWorld is unlawfully engaged in the sale and/or offer of unregistered securities in the form of investment contract, because it has no license to carry out the same,” the Commission En Banc held.
While AlphanetWorld is a duly registered corporation, it has never secured a secondary license from the Commission as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the SRC.
“[T]he Commission holds that the act of NWorld in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the order read. END