The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on E-COMMERCE, HOUSE OF ENTREPRENEURS 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 not to invest or stop investing in any investment scheme offered by the said company.
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.
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The Commission has received information that individuals or group of persons representing E-COMMERCE, HOUSE OF ENTREPRENEURS INC. (HOE) is engaged in a similar scheme of enticing the public to invest money with the promise of monetary rewards or profits.
Information gathered from online source and reports from the public show that HOE entices the public to invest a minimum of Five Thousand Pesos (Php5,000.00) as capital in exchange of promises of high returns of investment. It offers the following membership packages: Bronze, Silver and Gold.
The six (6) ways of earning as discussed in the HOE’s marketing plan are as follows:
- Direct Selling – Earn 30% income for every product sales;
- Referral Cycle Bonus – Earn 10% for every personal direct sponsor, minimum of 2 sponsors in order to get the cycle bonus;
- Sales Match Bonus – Earn up to Php5,000.00 for every sales match;
- Redundant Cycle/Matching Bonus –
- Earn a sales match bonus for every 5000 points earned by a member on left sales group and 5000 points earned by a member on the right sales group based on repeat purchase; or
- Earn a sales match bonus for every top-up package registered on your left and right sales group;
- Unilevel Bonus – Earn 5% rebates from your personal sales, purchase and group sales up to the 5th level; and
- Royalty Bonus – Earn from your upline Referral Cycle Bonus up to the 5th upline.
Further study of the said marketing plan shows that even if there are products involved, the scheme relies heavily on inviting people for a promise of high monetary rewards that can only be achieved through recruitment of more people to participate in the scheme.
Records of the Securities and Exchange Commission (SEC) show that E-COMMERCE, HOUSE OF ENTREPRENEURS INC. is a corporation registered with the SEC on 12 March 2019 with SEC Registration No. CS201951043. However, such registration grants juridical personality to the corporation but does not authorize it to issue, sell or offer for sale securities to the public nor to undertake business activities requiring a secondary license from the Commission.
The public is hereby informed that the E-COMMERCE, HOUSE OF ENTREPRENEURS INC. is NOT authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC).
Those who act as salesmen, brokers, dealers or agents of the said entity in selling or convincing people to invest in the investment scheme it is being offered including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014).
In view thereof, the public is hereby advised to STOP INVESTING in the investment scheme being offered by E-COMMERCE, HOUSE OF ENTREPRENEURS INC. or its representatives.
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.
Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department at telephone number 818-6047 or email at epd@sec.gov.ph.
For the guidance of the public.
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