The Securities and Exchange Commission (SEC) has made permanent the order stopping AlphanetWorld Corp., which has been doing business under the name NWorld, from soliciting investments from the public without the necessary
license.
In a resolution dated July 19, the Commission En Banc denied for lack of merit AlphanetWorld’s motion to lift the Feb. 23 cease and desist order (CDO) issued against the company for its unauthorized solicitation, offer and/or sale of securities.
In its motion to lift the CDO, AlphanetWorld argued that the purchase of its products and packages were plain sales transactions, in contrast to the SEC enforcement and investor protection department’s findings that it had engaged in the sale of securities.
“The evidence presented by NWorld in support of its allegations and arguments simply failed to trounce the finding of this Commission that NWorld is engaged in the sale of securities in the form of investment contract, and is in continuous violation of Section 8 of the [Securities Regulation Code],” the Commission En Banc said in a statement.
The SEC said it issued the CDO against AlphanetWorld and its officials, including its president, Juluis Allan C. Nolasco, after finding that the company had been selling and/or offering investment packages worth P4,750 to P19,000 in exchange for NWorld products and a guaranteed monthly return of up to P127,000. Business transactions are supposedly made through the company’s official webpage.
Member-investors were also promised discounts of up to 30 percent for every purchase of NWorld products, referral bonuses, and an additional P25,000 when they meet a certain number of recruits, according to the SEC.
The scheme involves selling and offering of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, the SEC said.
Section 8 of Republic Act No. 8799, or the Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.