BOSS ordered to stop selling securities
The Securities and Exchange and Commission (SEC) has ordered Building Our Success Stories Network Inc. (BOSS Network), which fashions itself as a multilevel marketing firm, to stop hawking what has been exposed to be a “fraudulent” investment scheme.
In an order dated June 18, the SEC 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 was duly filed with, approved and the corresponding permit to sell was issued by the regulator.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.
“It is clear that BOSS Network is soliciting investments from the public in the guise of operating a multilevel marketing business, with a promise of guaranteed high return of investment,” the SEC noted.
The corporate regulator also took note how BOSS Network’s business model resembled the nature of a Ponzi scheme, an investment fraud where the purported returns to existing investors are sourced from the contribution of new investors.
The cease-and-desist order covers the corporation’s directors and officers, namely Rommel Tabaniag, Raquel Argote, Ramon Tabaniag, Jojie Servan and Ailyn Marigh Lim, alongside other representatives, salesmen, agents and all persons claiming and acting for and in their behalf.
The order also covers 101Upper Class Corp., which operates an unauthorized investment scheme called BOSS Ultimate Program (BOSS UP) in collaboration with BOSS Network.The cease-and-desist order was issued after the SEC found out that BOSS Network was soliciting investments from the public under a scheme promoted in social networking sites as a multilevel 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 recruiting people. The points supposedly correspond to incentives such as all-expenses-paid trips abroad, as well as luxury timepieces and cars.
BOSS Network has a capital base of only P1.5 million while member investors are guaranteed monthly returns ranging from 50 percent to 87 percent of the amount invested, the SEC said.“Clearly, BOSS Network’s business model and capitalization cannot sustain the promised returns on investment, especially if no new investors will come in,” the SEC noted.
“Payouts for investors are financed from investments of new recruits/investors. This is a fraudulent scheme which will likely cause grave or irreparable injury or prejudice to the investing public.”
The SEC warned that appropriate administrative and criminal charges would await those acting as solicitors, information providers, salesmen, agents, brokers or dealers for BOSS Network and 101Upper Class.
In the course of its investigation, the SEC Enforcement and Investor Protection Department further found that two of BOSS Network’s incorporators submitted and used invalid tax identification numbers. INQ
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