According to the SEC, their Enforcement and Investor Protection Department (EIPD) 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 (RA) No. 11232, otherwise known as the Revised Corporation Code of the Philippines,” the Commission stated.
It added that Wellcons’ activities constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public.
It can be recalled that on February 2, 2022, the Commission, through an advisory, warned the public against investing in Wellcons.
On June 23, a cease and desist order was issued against the company.
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 avail investment packages under the Binary System can further earn through Wellcon’s Pangkabuhayan Program, where they can supposedly double their money within six months based on investment packages worth P1,500 to P5,000.
Wellcons also promised leadership bonuses and referral fees, among others.
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