By VG Cabuag
The Securities and Exchange Commission (SEC) has issued cease and desist orders against three companies, including GoldXtreme Trading Co., for suspected pyramiding scam activities.
The SEC said aside from GoldXtreme, it issued the same cease and desist order against Success200 International Marketing Corp. and Grantige Automobile Inc.
GoldXtreme is a partnership registered with the SEC on March 6, 2015, organized by Gavin Tan and Romell Tan, and has its principal office in Caloocan City.
Its primary purpose is to engage in the business of wholesale and retail sales of such products as gold jewelry and other products such as fashion accessories, cell phone loads, prepaid cards, scents and other related merchandise.
The SEC’s Enforcement and Investor Protection Department has been receiving e-mails from the public inquiring on the legality of the activities of GoldXtreme.
“In one of the e-mails, the sender inquired if GoldXtreme has obtained a secondary license from the commission to solicit investments from the public. As reported, GoldXtreme invites people to join and invest in the company,” the SEC said.
Investors are required to pay P5,000 as initial investment and they will be placed in a table of orders. The table of orders, comprise of 15 slots, will be filled up by new recruits. When the table of orders is filled up, the investors will exit and they will earn P25,000 with 10-percent withholding tax deducted by the company. All investors are advised to recruit in order to fill up the table of orders and they will be given P500 as referral bonus.
Meanwhile, Success200 was incorporated on May 12, 2015, with its primary purpose to engage in the business of manufacture, distribution and marketing of various products from pharmaceutical grade medicinal products, food supplements, health and wellness products, ready-to-wear clothing apparels, computer and computer peripherals, gadgets and equipment.
The incorporators and directors of Success200 include Alberto Monzuela, who is also its treasurer.
The SEC again received e-mails, which stated that the company promises to “turn an investment of P1,800 to P10,000.” Its investigation involved looking at a Facebook page of one of the company’s sales agents. Monzuela actually introduced himself to the SEC’s investigating team and explained that for P1,800 a member can get P1,500 worth of products such as tea, instant coffee and chocolate mix.
A member may earn P10,000 once such member completes one board, which consists of 15 members. To complete one board, each member in the board must refer at least two people. Such referrals must then refer two additional people, which is called a “split matrix.”
After the completion of one board, such member will “exit” or get a pay-out in the amount of P10,000. He will then transfer to second board by paying the amount of P1,800, and will “exit” or get a pay-out of P10,000 and the process goes on and on as the member moves up the ladder.
An investment of P1,800 is considered as the “low-end” level, and that a member may invest in the “high-end” level for the amount of P36,000. Such investment in the “high-end” level will allow the member to “exit” or get a pay-out in the amount of P200,000.
The SEC said Success200 has not been issued a certificate of registration or licenses as broker and dealer in securities or government securities, investment adviser of an investment company, investment house and transfer agent, among others.
Meanwhile, Grantige Automobile was incorporated on April 24, 2015, with the primary purpose of operating in the business of driving school and other related services that may be deemed incidental to the purpose. Its paid up capital is P312,500.
The SEC said it received an anonymous call, which claims the company might be engaged in “an illegal form of multi-level marketing.”
The SEC said it again looked at the Facebook page of the company, and found that it promised a payout of P12,000 after the payment of a fixed “entry fee” of P1, 200, when four other persons are recruited.
Another department of the SEC said that Grantige Automobile is not a registered issuer of securities and is not licensed to offer or sell securities to the public.
“During the ocular inspection, the investigating team noticed a tarpaulin featuring “different sports cars and luxury cars with words advertising earning opportunity outside the building of the office of GTA,” the SEC said.