The Securities and Exchange Commission (SEC) has ordered Wellcons Unlimited Systems, Inc. to stop offering its “binary investment scheme” to the public.
The SEC said Wellcons should first file registration statement and secure approval from the SEC before offering its investment scheme to the public.
“Wellcons, its president Merarie E. Pailagao, as well as its officers, operators, administrators, promoters, representatives, salesmen, agents, investment team planners, mentors, enablers, influencers, assigns, conduit entities, and subsidiaries have also been ordered to stop their investment solicitation activities, as well as to immediately cease their internet presence related to their unauthorized investment scheme,” the SEC said.
“They have likewise been prohibited from transacting any business involving funds in Wellcons’ depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of the investors,” the SEC added.
Wellcons has been offering investment packages worth P2,500 to P13,890 under the so-called binary system, which guarantees returns of up to P9,000 to P32,000 per day.
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, the SEC said.
“Members who availed investment packages under the Binary System can further earn through Wellcon’s Pangkabuhayan Program, where they can supposedly double their money within six months based on investment packages worth P1,500 to P5,000,” it added.
Wellcons also promises leadership bonuses and referral fees, among others, the SEC also noted.
The SEC said while Wellcons is registered with the agency, it has never secured a secondary license to operate as a broker/dealer of securities, nor is it a registered issuer of any securities.
