SEC renews warning against Paysbook

THE Securities and Exchange Commission (SEC) has reiterated its warning to the public against investing in Paysbook E-Commerce System Corp., as it has no license to solicit such investments.
In an advisory posted to its website, the SEC’s Enforcement and Investor Protection Department said it received information that Paysbook has been posting several photos on social media of its officers appearing before the commission, implying that it has settled its issues.
This is despite an earlier warning against Paysbook that the SEC issued last Aug. 1, 2018.
“To date, the Department has not issued any order lifting the Aug. 1, 2018 Advisory on Paysbook E-commerce System Co. Ltd. finding no sufficient ground or justification to lift the same. Thus, the general public is hereby informed that the Advisory remains valid and in effect,” the SEC said.
The commission said that Paysbook’s scheme involved enticing the public to buy online account activation codes so they could join its online platform. From there they could earn by simply logging in and out of the website, in addition to recruiting other people into the platform.
An investor would have to create a Paysbook account on paysbook.com, after which he or she will immediately earn P300. The activation code worth P1,000 will allow the investor to earn up to P1,200 every six days for log-in and log-out rewards.
Meanwhile, recruiting new members could generate commissions of up to P40,000.
The SEC said Paysbook is a registered corporation whose primary purpose is to engage in e-commerce system services, online selling, online advertising services, franchises business, website development and customized online system development.
While a registered company, it has not secured the license to solicit investments from the public, which requires a secondary license from the commission as per the Securities Regulation Code. The securities being sold must also be registered with the SEC.
“To reiterate the contents of the Advisory, the general public is hereby warned that all investment schemes are subject to the regulatory authority of this Commission,” the SEC said, noting that recruiting investor members into the system is considered a form of investment solicitation or a sale of securities.
Those found to be acting as salesmen, brokers, dealers, or agents of such companies can be penalized with a fine up to P5 million, or be imprisoned for up to 21 years. The names of the people involved in such schemes will also be forwarded to the Bureau of Internal Revenues so their taxes and penalties can be assessed accordingly. — Arra B. Francia