The Securities and Exchange Commission (SEC) has revoked the corporate registration of Wellcons Unlimited Systems, Inc. for illegally solicit investments from the public through a “double-your-money” scheme that resembles a Ponzi scam.
In its order, the SEC Enforcement and Investor Protection Department (EIPD) said it found that Wellcons has been publicly offering and selling securities without the necessary secondary license from the Commission.
“In doing so, Wellcons committed an ultra vires act under Section 44 of Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines,” the SEC said in a statement.
It noted that, “The company’s activities also constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree No. 902-A, according to the order.”
The Commission has warned the public against investing in Wellcons on February 2, through an advisory. A cease and desist order was subsequently issued against the company on June 23.
Wellcons has been offering investment packages worth P2,500 to P13,890 under a so-called Binary System, with guaranteed returns of up to P9,000 to P32,000 per day.
Members who availed investment packages under the Binary System can further earn through Wellcon’s Pangkabuhayan Program, where they can supposedly double their money within six…
