QUEZON CITY, June 03 (PIA) -- The Securities and Exchange Commission (SEC) has issued cease and desist orders against Fast Track Worldwide, Inc. and JOCALS688 Beauty and Wellness Products Trading, Inc. to stem their fraudulent investment schemes.
Fast Track Worldwide, Inc. and JOCALS688 are companies that offer health and beauty products directly to consumers. Both of them are not allowed to solicit, accept, or take investments/placements from the public neither shall they issue investent contracts, SEC said.
Evidence gathered by the SEC Enforcement and Investor Protection Department (EIPD) revealed that Fast Track actually offered investment packages bundled with health, lifestyle, and nutrition products for P1,499 to P49,999.
Investors were guaranteed with returns as much as P3 million a year, as well as commissions and bonuses when they recruit more people to invest in the company. The scheme constituted the sale and/or offer of securities in the form of investment contracts, whereby a person invests money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC.
“It is clear that Fast Track is not authorized to sell and/or offer the ‘Investment Packages’ to the public because they are securities in the form of investment contracts, and Fast Track does not have the requisite license from the Commission,” the SEC noted.
Meanwhile, JOCALS688 enticed members to deposit a minimum of P10,000 to earn P13,000 after a month. Alternatively, one could become a member by purchasing a package of products for P3,800.
Members could earn by selling the products. However, they could supposedly receive bigger returns by simply recruiting more people into the scheme.
The Commission also pointed out that the capitalization of JOCALS688 only amounted to P1 million while it promised investors a guaranteed 37% monthly income.
“Clearly, JOCALS688's business model and capitalization cannot sustain the promised returns of investment, especially if no new investors will come in. Payouts for investors are financed from investments of new recruits/ investors. This is a fraudulent scheme which will likely cause grave or irreparable injury or prejudice to the investing public,” SEC noted.
The SEC further prohibited these companies from transacting any business involving funds in their depository banks, and from transferring, disposing, or conveying in any manner all related assets to forestall grave damage and prejudice to all concerned and to ensure the preservation of the assets for the benefit of investors.
The public is advised to avoid or stop placing their hard-earned money in Fast Track and JOCALS688. (MTQ/PIA-IDPD with additional information from SEC)
Source: Philippines Information Agency (pia.gov.ph)
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