SEC NorMin urges public to be extra cautious in investments
CAGAYAN DE ORO CITY, May 21 – The Securities Exchange Commission (SEC) Cagayan de Oro Extension Office (SEC – CDOEO) urged everyone to always check the SEC Advisories and be extra cautious in dealing with investments operating today amid this pandemic.
Atty. Renato V. Egypto, SEC CDOEO Director said despite the COVID19 pandemic, their office have been receiving inquiries from various people under jurisdiction regarding to the legality of CROWD1 Asia Pacific, Inc.
Numerous reports were also sent via email of SEC CDOEO.
“We really encourage everyone to always check the SEC Advisories and be extra cautious in dealing your investments to different entities currently operating today amid this pandemic,” Atty. Egypto said.
The SEC issued the cease and desist order after finding that CROWD1 has operated “a fraudulent investment scheme consisting of the sale and/or offer of inexistent securities in the form of investment contracts to the public.”
CROWD1 solicits and accepts investments from the public by offering what it describes as educational packages for a minimum of P6,000 and as much as P240,000.
To entice the public to invest, CROWD1 promises member-investors five different bonuses: streamline bonus, binary pairing bonus, fear of loss bonus, matching bonus, and residual bonus from games and gambling apps.
CROWD1 likewise touts a pairing incentive payable in euros to encourage member-investors to recruit new members.
Representing itself as a digital marketing business, CROWD1 claims it generates income from online games and facilitates the generation by its members of residual income from its affiliate gaming companies such as AFFIGLO and MIGGSTER.
The SEC, however, ruled that CROWD1’s scheme involved the sale and/or offer of securities in the form of investment contracts and, thus, required a secondary license under Republic Act No. 8799, or The Securities Regulation Code (SRC). (SEC10)