The Securities and Exchange Commission (SEC) has ordered multi-level marketing firm Building Our Success Stories Network Inc. (BOSS Network) to stop luring investors into its investment scheme.
The SEC directed BOSS Network to immediately cease and desist, under pain of contempt, from further engaging in the sale and/or offering for sale of securities until the requisite registration statement is filed and approved, and the corresponding permit to sell is issued.
The SEC further ordered BOSS Network to refrain from transacting any business involving funds in its depository banks, and from transferring, disposing or conveying in any manner all related assets to forestall grave damage and prejudice to all concerned, and to ensure the preservation of the assets for the benefit of the investors.
The cease and desist order covers the corporation’s directors and officers, namely Rommel Q. Tabaniag, Raquel G. Argote, Ramon C. Tabaniag, Jojie O. Servan and Ailyn Marigh F. Lim, as well as representatives, salesmen, agents and all persons claiming and acting for and in their behalf.
The order also extends to 101Upper Class Corp., which operates the unauthorized investment scheme called BOSS Ultimate Program (BOSS UP) in collaboration with BOSS Network.
“Appropriate administrative and criminal actions await those acting as solicitors, information providers, salesmen, agents, brokers or dealers for BOSS Network and 101Upper Class,” the SEC said.
The SEC said the cease and desist order was issued after it discovered BOSS Network soliciting investments from the public under a scheme promoted in social networking sites as a multi-level marketing program for personal care products.
Under the scheme, BOSS Network offers packages priced from P1,500 to P382,500. The starting package includes two perfume bottles and two bars of whitening soap, while the top-tier bundle comprises 510 units for each product.
“The packages come with universal bonus pool shares that entitle member-investors to earn P2,250 to P707,625 in addition to bonuses they are promised for recruiting more people into the scheme,” the SEC said.
“Member-investors also earn points from buying the packages offered and from recruiting people. The points supposedly correspond to incentives such as all-expenses-paid trips abroad, as well as luxury timepieces and cars,” it added.