SEC Facebook

The Commission has received
several
information that ind
ividuals or group of
persons
representing
RU AFFILIATES
are enticing the pub
lic to invest in the said entity
through online
.
Based on
the information communicated to the Commission,
RU AFFILIATES
sells
a so
–
called “
IHX Factor
” worth
O
ne Thousand Five Hundred Ninety
–
Nine pesos
(
P1,599
)
,
an online training cou
rse consisting of 11 videos
on how one could recruit or sponsor
more downlines into his/her network marketing business, how one could sell products
online effectively, and how one could promote his/her traditional business.
For those
who purchased the said
training course, a so
–
called “
Top Secret System
” will be available
for free. The said system will enable its users to promote the business
online
and execute
the
said
entity’s compensation plan.
RU AFFILIATES
claims that the following compensation plan w
ill make its
members earn a million in a short period of time:
1.
Direct Commission
–
the member will earn P1000 for every person he/she
refers into the system;
2.
Shared Commission
–
for every 3 referrals,
the member will earn P200
; and
3.
Goodwill Commission
–
for every 3 referrals, the member’s
upline will earn
P400, and his/her downline who is next in line for the commission will
also
earn P400.
A
member may recruit by posting on his/her social media account or website, a
referral link that redirects to the s
ign up page of
RU AFFILIATES
that is
modified to link
to his/her
RU AFFILIATES
account. An interested friend, follower, subscriber, etc., may
click the said link, fill out the form and once submitted, a new account linked to the
recruiting member’s account
is created. The new member must add funds to his/her
account to purchase the
IHX Factor
online training course.
The public is hereby informed that
RU AFFILIATES
is not registered
with the
Commission
either
as a corporation
or partnership. Further, it
is
not authorized to
solicit investments from the public
as it has not secured the necessary license or permit
from the Commission as required under Section
s
8
and 12
of the Securities Regulation
Code (SRC).
Consequently, those who act as salesman, brokers, dealers or agents of
RU AFFILIATES
in selling or convincing people to invest in the investment scheme being
offered by
RU AFFILIATES
including solicitations or recruitment through the internet
may likewise
be prosecuted and held criminally liable under Section 28 of the Securities
Regulation Code and penalized with a maximum
fine of Five Million pesos
(P5,000,000.00) or
penalty of Twenty One (21) years imprisonment or both pursuant to
Section 73 of the SRC.
Accordingly, those who invite or recruit other people to join or invest in this
venture or offer contracts or securities to the public may be held liable or accordingly
sanctioned or penalized in accordance with the Supreme Court decision in the case of
SEC
vs. Oudine Santos (G.R. No. 195542, March 19, 2014).
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
RU AFFILIATES
or its representa
tives.
Should you have any information regarding the operation of the subject entity,
please call the Enforcement and Investor Protection Department at telephone numbers
818
–
6047.
For guidance of the public