A sad day for iWatchph International or iWatch.ph Corporation.
Hey iWatchers, let me analyze your business model and tell you that the SEC warning is long overdue.
So, how did it started?
In its advisory released on April 20th, 2021, the SEC warned the public against investing in iWatch.ph Corporation (iWatchph International). The government regulator said the subject company is soliciting investments from the public illegally.
In addition, the SEC said that the company is operating a pyramid scheme.
So, why did the SEC considered iWatch.ph a pyramid scheme? Why is it a scam? Who are the people behind the company?
Read this article to understand iWatch.ph (the MLM company) and how its business operates.
Before you proceed, please note there is a website called iwatch.ph. That is a legit site that offers quality professional care and companionship to individuals in need of health assistance – whether it’s at the home, hospital, or during travel.
In this article, I will be using iWatch.ph, iWatch PH International, or iWatch.ph Corporation interchangeably.
Table of Contents
What is iWatch.ph?
iWatch.ph (iWatch PH International or iWatch.ph Corporation) is a pyramid scheme masking as a legitimate Multi-Level Marketing (MLM) company in the Philippines.
Based on its website, iWatch.ph Corporation considers itself as an online business that gives Filipinos a lifetime reason to earn in 20 different ways and with multiple features.
The company considers itself as the game-changer of online marketing. Whatever the basis of this claim, only the founders know. MLM companies are fun of exaggerated statements. So, expect that this company will do the same.
Founders and Management Team
Jerome Operio, Reiner Cadizand Joseph Regalario are managing the pyramiding scheme of iWatch.ph Corporation. They created the iWatchph International Facebook page.
They constantly post top earners from their pyramiding operations.
Like most recruitment-based MLM I have reviewed, the company focuses more on the recruitment side. To make money, one must invest Php2,188.
After paying the capital, you will receive 6 pieces of Executive Soaps.
Trust us. You won’t be an executive after using the soap. In fact, you’ll become an executive scammer if you promote this scheme.
Here are several ways to earn aside from selling your ultimate soap.
- Sign-up Package. Receive soaps, 50 itokens, and i50 credits. An itoken is equivalent to Php10 while an icredit equals Php1.
- Direct Selling Bonus. Sell products at a discount.
- iCredit Distribution Bonus. Receive 2 icredits every day aside from the initial 50.
- Daily iToken Distribution. Receive 25 itokens per day for 25 days
- iToken + Bonus.
- Direct Referral Bonus. A member/iWatcher will receive Php200.00 pesos from the company and Php500.00 will be deducted from his Ads Wallet which will be transferred to his available balance. The Ads Wallet of a member/iWatcher will not be converted into cash if he/she was not able to recruit.
- Leadership Bonus.
- Sales Match Bonus.
- Maintenance Bonus.
- Repeat Direct Referral.
- Unilevel Bonus.
- iAdvertise Commission.
- iFoodcart Franchising Business.
The rest of the methods are discussed in the video below:
If you examine carefully the compensation plan, you’ll notice that iWatch.ph Corporation incentivized recruitment heavily than the actual sale of products or services.
This prompted the SEC to issue an advisory against investing in iWatch.
Is iWatch.ph Corporation (iWatchph International) Legit or a Scam
iWatchph Corporation is a scam. It’s a pyramid scheme. It solicits investments from the public illegally.
Read what the SEC says:
“The public is hereby advised to exercise due care and caution in investing their money in this typeof scheme being offered by iWATCH.PH and/or its agents. In the instant case, the scheme of iWATCH.PH has the characteristics of a Pyramid scheme. The Pyramiding scheme involves securities because for payment of a sum of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits. The scheme that requires recruitment in a two-pronged structure takes the form of a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Here, the recruitment fees collected from new recruits are used to pay the recruiting commissions to earlier recruits.” source
It’s crystal clear. The SEC has gathered enough evidence to conclude that the subject entity is running a pyramid scheme.
While it appears that iWatch.ph has products, the intention of the members or affiliate is not to sell them. Rather, they joined the scheme so that they will have the right to recruit other investors and make money from their payments.
Under consumer law, pyramid schemes are illegal in the Philippines.
Furthermore, the SEC discovered that the company has violated the investment law.
The SEC added:
“As the scheme of iWATCH.PH involves the sale of securities to the public, the SRC requires that the issuing entity must be a registered corporation with the SEC, the said securities offered are duly registered and that the appropriate license and/or permit to offer and sell securities to the public are issued to the corporation and/or its agents, pursuant to the provisions of Sections 8 and 28 of the SRC.
Records of the Commission show that while iWATCH.PH CORPORATIONis registered with the Commission as a corporation, it is not authorized to solicit investments from the public as it did not secure prior registration and/or license to solicit investments from the Commission as prescribed under Section 8 and 28 of the SRC.“
Imprisonment and Penalty if you Promote iWatchph
The law on investments is harsh because it protects the investing public from illegal investing activities. When you promote iWatchph International, here is what you’ll get:
“Those who act as salesmen, brokers, dealers, or agents of iWATCH.PH in selling or convincing people to invest in their investment schemes including solicitation or recruitment through the internet may likewise be prosecuted, held criminally liable, and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or a maximum penalty of Twenty-One (21) years of imprisonment or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014).”
iWatch.ph Corporation is a pyramid scheme. It solicits investments from the public illegally. It is a scam.
The company’s business model relies on the recruitment of new investors. Payments of new investors are then used to finance the promised returns of earlies members.
iWatch.ph operations won’t last long. When new investments are no longer coming in, the pyramid scheme will collapse, leaving the people at the bottom of the pyramid at a loss.
In pyramid schemes, those who are making money are the founders and early promoters. This is done at the expense of the poor downlines.
Avoid iWatchph. Invest your money somewhere else!