MANILA - AlphanetWorld or NWorld is not allowed to solicit investments from the public as it lacks a license, the Securities and Exchange Commission said Tuesday.
In a statement, the SEC said it has made permanent an earlier order which stopped NWorld from the said activities.
AlphanetWorld is a registered corporation, the SEC said, but it has never secured a secondary license from the Commission as an issuer of securities or as a broker-dealer nor registered any securities for public offering pursuant to the Securities Regulation Code.
The SEC cited the Securities Regulation or RA No. 8799 Sec. 8 which states that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filied with and approved by the SEC.
“NWorld is unlawfully engaged in the sale and/or offer of unregistered securities in the form of investment contract, because it has no license to carry out the same,” the Commission En Banc held.
A cease and desist order (CDO) was earlier slapped against NWorld and its officials including President Julius Allan Nolasco after the SEC found out that it has been selling and offering investment packages worth P4,700 to P19,000 in exchange for NWorld products and guaranteed monthly returns of up to P127,000.
Member-investors could earn discounts of up to 30 percent for every purchase of NWorld products, referral bonuses and an additional 25,000 when they meet the 25 pairs of recruits.
“[T]he Commission holds that the act of NWorld in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the order read.
NWorld asked the SEC to lift its CDO, but the regulator denied this appeal on July 19.
The SEC said its Enforcement and Investor Protection Department's found that NWorld "has engaged in the sale of securities" despite its claim that the purchase of its products are plain sales transactions.
“The evidence presented by NWorld in support of its allegations and arguments therein simply failed to trounce the finding of this Commission that NWorld is engaged in the sale of securities in the form of investment contract, and is in continuous violation of Section 8 of the [Securities Regulation Code],” the Commission En Banc said in its decision.