By Jenina P. Ibañez
THE Securities and Exchange Commission (SEC) is warning the public against investing in a rewards program called Inochi/Inochi Rewards, which it said is not authorized to collect money.
In an advisory posted on its website, the country’s corporate regulator said Inochi/Inochi Rewards is neither recognized by the SEC as a corporation or partnership, nor is it authorized to solicit investments from the public.
SEC warned the public against participating in investment solicitations from individuals representing Inochi/Inochi Rewards.
“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Inochi/Inochi Rewards and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it.”
Inochi/Inochi Rewards dealers offer product packages that cost between P11,000 to P110,000. To attain membership, individuals are asked to buy a product package, from which they are told they would earn rewards points monthly for up to 12 months, depending on the business value of their chosen product package.
Members then expect to earn 10% from referrals, as well as overriding commissions for repeat purchases from other members in the group.
“Simply, an investor is entitled to receive passive income from the pool of investment gathered, while active income is acquired from recruitment bonuses,” the advisory said.
SEC said Inochi/Inochi Rewards sales persons, brokers, dealers, or agents enticing the public to invest or soliciting and recruiting through the Internet may be prosecuted and penalized with either or both a maximum fine of five million pesos or 21 years imprisonment.
Individuals who recruit others to invest in the venture or offer contracts or securities to the public may also be held criminally liable.
Names of all involved will also be reported to the Bureau of Internal Revenue to assess appropriate penalties or taxes.