The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on NARCFUNDS/NARCSFUND, 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 extreme 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 Commission has received information that individuals or group of persons representing NARCFUNDS/NARCSFUND, are allegedly enticing the public to invest/donate in the said entity online or through the internet.
As posted in its website, NARCFUNDS/NARCSFUND is allegedly being headed by Kwon, Jin-ho, a Korean national who is currently travelling across the globe in order to further the cause. Said CEO is presently and actively working in four (4) countries, namely; UK, Singapore, Korea and Philippines.
Meanwhile, a Facebook (FB) Group of NARCFUNDS/NARCSFUND, known as Team PH Leaders, is actively being operated by its administrators and/or moderators.
The FB posts of its members present the compensation plans of NARCFUNDS/NARCSFUND as follows:
|DONATION LEVEL||GENEALOGY||TOTAL INCOME|
|LEVEL||AMOUNT (PHP)||MY TEAM||Per LEVEL|
Further, a video was posted on the said FB Group explaining the marketing scheme of NARCFUNDS/NARCSFUND, to wit:
- To be a member, a person should donate money in the amount of Four Thousand Pesos (Php4,000.00).
- One Thousand Pesos (Php1,000.00) of the donated amount will go to the company, and the remaining Three Thousand Pesos (Php3,000.00) will go to the member’s account.
- To earn money, the member-donor should recruit two (2) persons who will also donate an amount of Four Thousand Pesos (Php4,000.00) in order for him/her to receive One Thousand Pesos (Php1,000.00) for every person he/she recruited.
The public is hereby advised to exercise due care and caution in investing their money in this type of scheme being offered by NARCFUNDS/NARCSFUND and/or its agents.
Where the scheme involves the sale of securities to the public, the SRC requires that the issuing entity must be a registered corporation with the SEC, 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 Sections 8 and 28 of the SRC.
Those who act as salesmen, brokers, dealers or agents of NARCFUNDS/NARCSFUND in selling or convincing people to invest in their investment schemes including solicitation or recruitment through the internet may likewise be prosecuted, held criminally liable and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or a maximum penalty of Twenty-One (21) years of imprisonment or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes will be correspondingly assessed.
The Commission urges anyone who has knowledge or information about any business transaction of NARCFUNDS/NARCSFUND and/or its agents to report such activity to the Enforcement and Investor Protection Department at telephone number 8818-6047.
For the guidance of the public.