Manila, Philippines- The Securities and Exchange Commission (SEC) of the Philippines has reiterated its advisory against Paysbook E-commerce System Co. Ltd (now Paysbook E-commerce System Corporation). It warned the public to take precaution before investing in the said entity.
Based on the information gathered by the Commission, Paysbook E-commerce System Co. Ltd dissolved its partnership last November 2018 and registered a corporation called Paysbook E-commerce System Corporation.
The SEC noted that both the Partnership and the Corporation are not authorized to solicit investments from the public because these entities did not secure prior registration and/or license to solicit investments nor have they applied for the issuance of any secondary license from the Commission as prescribed under Section 8 of the Securities Regulation Code.
Furthermore, the SEC’S Enforcement and Investor Protection Department (EIPD) received information that various members and affiliates of PAYSBOOK have circulated in a popular social media website numerous photos of its officers appearing before the Department implying all of the company’s issues with the Commission have already been settled.
Also, some officers, members, and affiliates have been circulating a photo of its Certificate of Incorporation as proof of the legitimacy of its operations.
“To date, the Department has not issued any order lifting the 01 August 2018 Advisory (hereafter “Advisory”) on PAYSBOOK E-COMMERCE SYSTEM CO. LTD. finding no sufficient ground or justification to lift the same. Thus, the general public is hereby informed that the Advisory REMAINS VALID AND IN EFFECT”, the EIPD clarified.
Paysbook has been soliciting money from the public for a promised return to join their platform.
According to the government regulator, the recruitment of investor members under the guise of sponsoring a person into the system or platform is considered a form of investment solicitation or a sale of securities.
The offering or sale of securities to the public without a permit or license from the Commission is a violation of Section 8.1 of the Securities Regulation Code (SRC).
Moreover, the Commission warned that, those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in an unregistered investment scheme, including solicitations and recruitment through the internet, may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of Five Million Pesos (P5,000,000.00) or penalty of twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.
Source: SEC Paysbook Advisory