THE Securities and Exchange Commission (SEC) warned the public about dealing with Building our Success Stories Network, Inc. (Boss Network), saying the group is not licensed to solicit investments despite being registered with the commission.
In an advisory posted to its website Thursday, the country’s corporate regulator said Boss Network’s registration only allows it to directly sell goods and merchandise to consumers.
“It must be emphasized that the company is not authorized to offer, solicit, sell or distribute any investment/securities,” the SEC said. It added that a company needs a secondary license to offer, solicit, sell, or distribute investments or securities, as well as register the securities with the commission.
SEC released the advisory after receiving information that Boss Network was recruiting people into its group through the sale of eight types of packages starting from P1,500 to P382,500 each.
The lowest package, called the Bronze package at P1,500 each, grants members one universal bonus pool (UBP) share, which allows them to earn a maximum of P2,250. The package includes two perfumes, and two kinds of soap.
Boss Network’s most expensive package called Diamond is priced at P382,500, and in turn will let them earn up to P707,625. Products under the package include 510 perfumes and a total of 510 soaps.
Another way to earn is through what Boss Network calls the Unilevel income, where a member can earn P5 for every purchased product of his downline up to the 10th level.
The SEC noted that a company promising profits mainly from the efforts of its members and recruits, instead of the success of an underlying business, may be an investment scam.
“While the scheme may involve sale of products, the same may still constitute an investment scam if the sale of the products is not the primary focus of the scheme. In such a case, the sale of the products is just being used in order to make the investment scam appear to be legal,” the commission said.
The SEC warned that those who act as salesmen, brokers, dealers, or agents of the company described as a potential investment scam may be prosecuted and held criminally liable under the Securities and Regulation Code, with a maximum fine of P5 million or penalty of up to 21 years imprisonment. — Arra B. Francia
