CA upholds cease and desist order vs NWorld
ILLEGAL SOLICITATION

CA upholds cease and desist order vs NWorld 

/ 02:04 AM January 15, 2025

CA upholds cease and desist order vs NWorld 

Photo from Alphanetworld Corporation – Nworld/Facebook

A company found to have been illegally soliciting investments from the public will remain banned from doing so as the Court of Appeals (CA) upheld the cease and desist order of the Securities and Exchange Commission (SEC).

The SEC said in a statement on Tuesday that the CA 8th Division had ruled that the commission provided due process to AlphanetWorld Corp. (NWorld) in issuing the order in February 2022.

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NWorld and its directors, stockholders, agents and “all persons acting on their behalf” were directed to stop getting investments without the SEC’s approval.

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“Undoubtedly, [NWorld’s] business operation or scheme constitutes an investment contract that is a security under [Republic Act] No. 8799,” the CA said in its ruling dated Dec. 27, 2024, referring to the Securities Regulation Code.

According to the SEC Enforcement and Investor Protection Department, NWorld sold investment packages ranging from P4,750 to P19,000, promising returns of up to P127,000 a month.

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Investors were supposedly entitled to bonuses, including discounted rates for every purchase of investment packages, referral bonus, sales match bonus and a potential income of P25,000, should they meet the minimum number of recruits.

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The SEC argued that these were considered investment contracts, a form of securities that need to be filed with and approved by the corporate watchdog.

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“The strict regulation of securities is founded on the premise that the capital markets depend on the investing public’s level of confidence in the system,” the appellate court said.

“As [NWorld] failed to register the same, its offering or sale to the public was rightfully enjoyed by SEC,” it added.

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TAGS: Court of Appeals

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