CEBU, Philippines — The Securities and Exchange Commission (SEC) has issued a cease and desist order against Building Our Success Stories Network, Inc. (BOSS Network) as it proved that its operations fall under a fraudulent investment scheme.
According to SEC, Boss Network has been operating disguising as multi-level marketing company, but was found out otherwise.
In an order issued on June 18, the Commission directed BOSS Network to immediately cease and desist, under pain of contempt, from further engaging in the sale and/or offering for sale of securities until the requisite registration statement is duly filed with and approved and the corresponding permit to sell is issued.
The SEC further ordered BOSS Network to refrain from transacting any business involving funds in its 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 the investors.
The cease and desist order covers the corporation’s directors and officers, namely Rommel Q. Tabaniag, Raquel G. Argote, Ramon C. Tabaniag, Jojie O. Servan and Ailyn Marigh F. Lim, as well as representatives, salesmen, agents and all persons claiming and acting for and in their behalf.
The order also extends to 101Upper Class Corporation, which operates the unauthorized investment scheme called BOSS Ultimate Program (BOSS UP) in collaboration with BOSS Network.
Appropriate admin-istrative and criminal actions await those acting as solicitors, information providers, salesmen, agents, brokers or dealers for BOSS Network and 101Upper Class, the SEC warned.
The Commission issued the cease and desist order after finding BOSS Network to have solicited investments from the public under a scheme promoted in social networking sites as a multi-level marketing program for personal care products.
Under the scheme, BOSS Network offers packages priced from P1,500 to P382,500. The starting package includes two perfume bottles and two bars of whitening soap, while the top-tier bundle comprises 510 units for each product.
The packages come with Universal Bonus Pool shares that entitle member-investors to earn P2,250 to P707,625 in addition to bonuses they are promised for recruiting more people into the scheme.
Member-investors also earn points from buying the packages offered and from recruiting people. The points supposedly correspond to incentives such as all-expenses-paid trips abroad, as well as luxury timepieces and cars.
The scheme constitutes 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 BOSS Network is soliciting investments from the public in the guise of operating a multi-level marketing business, with a promise of guaranteed high return of investment,” the Commission noted.