THE Securities and Exchange Commission (SEC) has advised the public against investing in Dreamconnect International Corp., saying it has no authority to solicit investments.
In an advisory posted to its website on Friday, the country’s corporate regulator said that while Dreamconnect holds a primary registration as a corporation, it does not hold a secondary license which allows it to offer, solicit, sell or distribute any investments or securities.
The securities and investments held by Dreamconnect must also be registered with the SEC for Dreamconnect’s activities to be considered legal.
“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 DREAMCONNECT INTERNATIONAL CORPORATION or its representatives,” the SEC said.
The SEC found that Dreamconnect has been selling membership packages worth P1,500, which includes a lifetime membership, perfume worth P1,199, 50% discounts on Dreamconnect products, marketing tools, and a webpage.
In exchange, the company promises five ways to earn, including the following schemes:
• Sales Match Bonus — a member will earn P300.00 for every pair (left and right) of blue account (account with 2 direct referral), maximum of 15 pairs per day or P4,500.00 per day
• Binary income projection for worst case scenario (only two recruits), a member will earn P6,553,500.00 in four months.
• Pass Up Bonus — a member will earn P200 for every pair starting from the third direct referral and up to infinity with a possible income of P26,213,200.00 in four months.
Dreamconnect also promises a direct referral bonus of P100 for each new member brought in, and one peso per ad clicked on the company’s online platform. Each member is entitled to 500 maximum clicks per day and up to P2,000 per account.
With this, the SEC warned that those who act as salesmen, brokers, dealers, or agents of Dreamconnect may be prosecuted under the Securities Regulation Code, with a maximum fine of P5 million or up to 21 years imprisonment.
Entities who invite or recruit other people to join Dreamconnect may likewise be sanctioned or penalized in accordance with the law.
The SEC earlier cautioned the public against entering into such investments schemes, pointing out that if the returns are too good to be true, they most likely are. — Arra B. Francia