SEC warns investors against One Lightning
THE SECURITIES and Exchange Commission has warned the public against dealing with One Lightning Corp., a fledgling local company that offers handsome returns on cosmetics and healthcare products investing.
In an advisory posted on its website on March 10, the SEC said One Lightning had not been issued by the corporate regulator any secondary license to publicly offer or sell securities. Neither was it authorized to solicit investments from the public, the SEC said.
As part of its modus operandi, the SEC said One Lightning was inviting people to invest in its cosmetics and healthcare products by promising huge returns on investment through what it claims was a “revolutionary” compensation plan to distributors. The company’s pitch was that it was sharing 70 percent of its profits to investors.
“Based on investigations conducted, the said company undertakes to give referral awards for sponsoring new investors and maturity awards when those investors in turn are able to recruit new investors or when their accounts mature,” the SEC said.
One Lightning, which uses a multi-level marketing scheme, was also promising to give bonuses at every level for three levels of referrals made, the SEC said.
“Those who participate in this investment-taking activity of One Lightning Corp. run the risk of being prosecuted for criminal violation of the Securities Regulation Code,” the SEC said.
Based on its website, One Lightning is a Filipino-owned corporation that was established only last year, one that markets beauty, skin and personal care products, food supplements and healthy beverages through what it describes as a “unique and powerful distribution method designed to provide exceptional income opportunity to its distributors for both local and international market.”
The company said its vision was to “be the industry leader in the distribution of top-quality products and services offering exceptional opportunities that deliver superior earnings, recognition, and rewards for every distributor to reach their highest growth potential and achieve financial independence in an easier and most effective way.”
In an open letter posted on its Facebook account on Monday, One Lightning said that its legal team was already looking into “unconfirmed” reports that “certain individuals who may feel threatened by our company’s rapid growth and potential are orchestrating moves to discredit us.”
“We strongly believe in the livelihood opportunities we provide. We stand by the quality of our products,” One Lightning said.
On March 6, the company also said it had received reports that certain individuals were “misrepresenting” the company by convincing people to make product purchases directly from them without following procedures for product purchases. These individuals were using social media like Facebook to solicit investments and then simply delete the accounts after getting money from their victims.
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