SEC renews warning against Powerhomes

The Securities and Exchange Commission (SEC) warned the public anew against buying investment contracts offered by Powerhomes Unlimited Corp. in the light of reports the latter has been illegally dragging other established groups as its partners.

Tomas Syquia, director of the SEC’s Compliance and Enforcement Department, reiterated that there is a pending case at the Court of Appeals between Powerhomes and the SEC involving mainly the cease and desist order (CDO) issued by the SEC in January last year.

The SEC issued the CDO against Powerhomes for selling unregistered investment contracts, in violation of the Securities Regulation Code.

Employing a multi-level network marketing strategy, Powerhomes gives its members the opportunity to own real estate such as a house and lot package in exchange for $298 in enrollment fee.

Upon enrollment and completion of training, the member is awarded his/her own Business Center – usually an Internet web site – wherein he can recruit other members for a fixed commission.

The SEC has also referred the matter to the Department of Trade and Industry (DTI) for the possible involvement of the pyramiding scheme.

Syquia said Powerhomes was able to carry on with its activities and has expanded its operations abroad as it has secured an injunction from the CA on the said CDO. The SEC, now acting through the Office of the Solicitor General, has filed motions for reconsideration and early resolution to expedite the case.

Earlier, it was reported that the website marketing company has branched out abroad and is actively soliciting from overseas Filipino workers (OFWs) in Saudi Arabia, the United Arab Emirates and Hong Kong.

The Chamber of Real Estate and Builders Association (CREBA), the umbrella group of housing and property developers in the country, has denied that it has been endorsing the marketing program of Powerhomes and has in fact suspended its membership.

Another group of companies, the AMA Group, has disclaimed its partnership with Powerhomes with the termination of their memorandum of agreement last December.

The AMA Group Learning Center said the move came about due to the "serious misrepresentations and contract violations committed by Powerhomes.