The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on PAYSBOOK E-COMMERCE SYSTEM CO. LTD (“PAYSBOOK”), warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to take precautions in joining or investing in these groups.
In support of this view, Coins.ph does not endorse or is affiliated in any way with such activities or products. Moreover, we have a zero tolerance policy on fraudulent activities and potentially scamming practices. In a separate article, we have enumerated tips on how you can avoid investment schemes and other online scams. We urge our customers to be extra diligent with their funds and to act within our User Agreement.
The Securities and Exchange Commission has received information that last November 2018, PAYSBOOK ECOMMERCE SYSTEM CO. LTD (Hereafter “Partnership”) dissolved its partnership and has
caused the registration of a corporation called PAYSBOOK E-COMMERCE SYSTEM
CORPORATION (Hereafter “Corporation).
Per records of the Securities and Exchange Commission (Hereafter “Commission”), the
Partnership is registered in the Commission’s database as a partnership with the primary
purpose of engaging in the following businesses: e-commerce system services, online selling,
online advertising services, franchising business, website development and customized online
system development. Likewise, the Corporation was registered in the Commission’s database as
a corporation having the same primary purpose.
However, both the Partnership and the Corporation (collectively “PAYSBOOK”) are
not authorized to solicit investments from the public as the above-mentioned entities
did not secure prior registration and/or license to solicit investments nor have
they applied for the issuance of any secondary license from the Commission as
prescribed under Section 8 of the Securities Regulation Code.
The Department has also received information that the members and affiliates of
PAYSBOOK have circulated in a popular social media website numerous photos of its officers
appearing before this Department implying all of the company’s issues with the Commission
have already been settled. Moreover, we also received information that some officers, members
and affiliates have been circulating a photo of its Certificate of Incorporation as proof of the
legitimacy of its operations.
To date, the Department has not issued any order lifting the 01 August 2018 Advisory
(hereafter “Advisory”) on PAYSBOOK E-COMMERCE SYSTEM CO. LTD. finding no
sufficient ground or justification to lift the same. Thus, the general public is hereby informed
that the Advisory REMAINS VALID AND IN EFFECT. In the said Advisory, PAYSBOOK’s
scheme was presented as follows:
“Based on information gathered by the Commission, PAYSBOOK
entices the public to invest by selling online account activation codes for
participation in its platform to allegedly earn by simply logging in and out of
the website and recruiting other individuals to join the investment scheme. The
entire investment scheme is described in detail as follows:
1. The investor is required to create a PAYSBOOK account in their website:
https://paysbook.co/auth/register?id=(username of offeror);
2. The investor will then be brought to a registration page where he will be asked
to fill in his First Name, Last Name, Username, E-mail Address, Password and
3. By simply accomplishing the registration process, an investor earns Php300.00.
To fully maximize profits, an activation code needs to be purchased from an
upline or recruiter by paying a one-time fee of PhP1,000.00;
4. After an activation code is purchased and entered into the system, a
PAYSBOOK account owner can earn the following:
a. Sign-in Reward – as explained earlier, an investor who opens an account
earns PhP300.00 by simply signing-up on the PAYSBOOK platform;
b. Log-in Reward – pertains to the reward earned amounting to PhP50.00 for
simply logging-in to the platform. An investor is limited to two logins per
day for up to six days to earn a total potential log-in reward of Php600.00;
c. Log-out Reward - pertains to the reward earned amounting to PhP50.00
for simply logging-out from the platform. An investor is limited to two
logouts per day for up to six days to earn a total potential log-out reward of
d. Posting Reward – INDIGEN COINS are earned for every post, comment,
share or like to the investor’s PAYSBOOK social media account. An
investor shall earn 0.025 INDIGEN COIN for every like, share or
comment made and 0.050 INDIGEN COIN for every post made in social
e. Direct Commission – The investor is entitled to a direct commission
amounting to PhP100.00 for every person who is recruited, whether
directly or indirectly through his downlines, and who subsequently
activates his account for maximum of fifteen (15) recruits or account
activations or a maximum commission of PhP1,500.00;
f. Matching Commission – The investor is entitled to a matching commission
amounting to PhP100.00 for every pair recruited, whether directly or
indirectly through his downlines, and activated on the left and right side of
his recruitment pyramid for up to forty (40) pairs matched per day or a
maximum commission of PhP4,000.00 per day;
g. Leveling Commission – The investor is entitled to a levelling commission
amounting to PhP400.00 for filling every level or layer of his recruitment
pyramid with downlines, recruited either directly or indirectly through his
downlines, for up to the tenth level or layer or a maximum of
PhP40,000.00 for all levels or layers.”
Moreover, since the operation of the Corporation, despite having a separate and distinct
juridical personality, is a mere continuation and extension of the actual operations of the
dissolved Partnership, the Advisory is hereby extended to apply to PAYSBOOK ECOMMERCE SYSTEM CORPORATION.
To reiterate the contents of the Advisory, the general public is hereby warned that all
investment schemes are subject to the regulatory authority of this Commission. The recruitment
of investor members under the guise of sponsoring a person into the system or platform is
likewise considered a form of investment solicitation or a sale of securities. The offering or sale
of securities to the public without a permit or license from the Commission is a violation of
Section 8.1 of the Securities Regulation Code (SRC).
If a scheme involves the sale of securities to the public, the SRC requires that the said
securities offered are duly registered and that the appropriate license and/or permit to sell
securities to the public are issued to the corporation and/or its agents, pursuant to the
provisions of Section 8 of the SRC.
Likewise, those who act as salesmen, brokers, dealers or agents of these companies in
selling or convincing people to invest in any unregistered investment scheme, including
solicitations and recruitment through the internet, may likewise be prosecuted and held
criminally liable under Section 28 of the Securities Regulation Code and penalized with a
maximum fine of Five Million pesos (P5,000,000.00) or penalty of twenty-one (21)
years of imprisonment or both pursuant to Section 73 of the SRC.
Accordingly, those who invite or recruit other people to join or invest in this venture or
offer investment contracts or securities to the public may be held criminally liable or accordingly
sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs.
Oudine Santos (G.R. No. 195542, March 19, 2014).
Furthermore, the names of all those involved will be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.
In view thereof, the public is hereby advised to exercise caution before investing in these
kinds of activities and to take the necessary precaution in dealing with the aforementioned
We are encouraging anyone who has any information about or complaints against the
said entities to personally visit or communicate with the Department at the Enforcement and
Investor Protection Department, Ground Floor, North Wing, Secretariat Building, PICC
Complex, Roxas Boulevard, Metro Manila.
Kindly bring or send all relevant documents which would substantiate your claim
including but not limited to the following: (1) copy of the contract; (2) any brochure, pamphlet,
flier or proof of advertisement of the offer of securities; (3) printed screenshots showing any
offering, solicitation or sale of securities; (4) videos which you may have taken as proof of the
sale or offering of securities; and (5) any other evidence proving the conduct of offering of
securities. It is highly advised that you give us a call before visiting to ensure that the handling
personnel is present to entertain you. For inquiries, call us at (02)818-6337 or (02)818-6047.
For the guidance of the public.
8 January 2019.