The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on PAYS UP ONLINE MARKETING BUSINESS INC., 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 (“Commission”) has received numerous information regarding the activities of the entities named PAYS UP ONLINE MARKETING BUSINESS INC. (“PAYS-UP”) and PAYS-UPGEN MARKETING BUSINESS UNLIMITED INC. (“PAYS-UP GEN”).
Based on the information gathered by the Commission, PAYS-UP and PAYS-UP GEN have been enticing the public to invest in the said entities online or through the internet via any of its “COMPENSATION PLANS” (Starter Account, Starter Plus Account, Elite Account and Premium Account) with promised REWARDS (Sign Up Rewards, Watch and Earn Rewards, Direct Referral Rewards, Indirect Referral Rewards, Sales Match Rewards, Pays Up Gen Rewards, Gratitude Rewards and Crossline Rewards).
The public is hereby informed that any offering to the public which involves investment of money in a common enterprise with the expectation of profits primarily from the efforts of others, constitutes an investment contract which is a form of securities that needs to be registered with the Commission. Thus, the public is hereby WARNED that selling or offering for sale of such investments are considered as selling or offering for sale of securities subject to the regulatory authority of this Commission.
Per records of the Commission, PAYS-UP was registered with the Commission as a corporation on April 4, 2019 with Company Registration No. CS201905181 while PAYS UP GEN was registered on June 17, 2019 with Company Registration Number CS201909578.
However, the issuance of a Certificate of Incorporation only grants an entity juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC. Note that the registration of PAYS UP ONLINE MARKETING BUSINESS INC. and PAYS-UPGEN MARKETING BUSINESS UNLIMITED INC. with the SEC does NOT authorize the said entities to offer, solicit, sell or distribute any investment/securities. Such activities require a Secondary License from the Commission and the securities or investment product should likewise be registered with the SEC before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code (SRC).
As such, those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in the investment scheme being offered by these entities including solicitations and recruitment through the internet may 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.
Hence, 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 consequently 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).
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 PAYS UP ONLINE MARKETING BUSINESS INC. (“PAYS-UP”) and PAYS-UPGEN MARKETING BUSINESS UNLIMITED INC. (“PAYS-UP GEN”) or its representatives.
Should you have any information regarding the operation of the subject entities, please call the Enforcement and Investor Protection Department at telephone numbers (02) 818-6047.
For the guidance of the public.