The Securities and Exchange Commission (SEC) said Thursday it issued a cease-and-desist order against Superbreakthrough Enterprises Corp., which has been doing business under the name 1UP Time, for allegedly soliciting investments from the public.
It ordered Superbreakthrough to immediately stop engaging in “the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.”
It also prohibited the company from transacting any business involving funds in its depository banks and from transferring, disposing or conveying any related assets to ensure the preservation of the assets of its investors. The company was also ordered to cease its internet presence relating to its investment scheme.
The order covers Superbreakthrough Enterprises president Juluis Allan Nolasco, its directors, officers and agents.
The SEC said it found the company to have been offering investment packages consisting of health, wellness, skincare and personal care products through social media platforms. Jenniffer B. Austria
It said the packages, priced from P10,000 to P188,000, promised returns ranging from 25 percent to 35 percent worth of product discounts, recruitment bonuses and other incentives.
“A careful examination and analysis of the investment scheme of 1UP Time will readily show that its success and viability is heavily dependent on recruitment and/or entry of new investors who are guaranteed P500 per new recruit/referral,” the order read.
Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC), provides that securities should not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.
The SEC said while Superbreakthrough is registered as a corporation, it had not secured the required secondary license that would authorize it to sell or offer securities to the public.