The Securities and Exchange Commission (SEC) declared the permanent closure of Wellcons Unlimited Systems Inc. for soliciting investments from the public without the necessary license.
On Thursday, the regulator said it had rejected the request of Wellcons to lift the cease and desist order issued against the company for offering investments “in the guise of health products.”
“Wellcons offered investment packages worth P2,500 to P13,890 under a so-called binary system, with guaranteed returns of P9,000 to P32,000 per day,” the SEC said.
The company had also offered Wellcon’s Pangkabuhayan Program that supposedly allowed investors to double their money within six months through investment packages amounting to P1,500 to P5,000.
The SEC Enforcement and Investor Protection Department noted the investment scheme involved securities. Section 8 of the Securities Regulation Code states that an entity is not allowed to sell or offer securities without a registration statement approved by the regulator.
While Wellcons is a duly registered corporation, it has no secondary license to operate as a broker or dealer of securities, the SEC said.
The regulator said it would “proceed with the revocation of the certificate of incorporation of Wellcons through an order dated July 5.”
SEC added it had issued an advisory to the public as early as February 2, warning them against making investments in Wellcons.
It also earlier ordered the permanent closure of online lending operators Skymart, Withu and Spendcash for providing services sans the requisite licenses.