SEC Facebook

The Commission has received information that an individualor group of persons representing an entity named ELITE ONLINE SYSTEM are enticing the public to invest their money in the said entity with the promise of high monetary rewards or profits.Information gathered from online sourcesand reports from the public show that ELITE ONLINE SYSTEM is employingthe same schemes and is being managed by the same person or group of persons operating the TEACHERS FINANCIAL COACHING PROGRAM (TFCP)/TEACHERS FINANCIAL FREEDOM PROGRAM (TFFP)/ELITE TEACHERS FINANCIAL PROGRAM (ETFP)/TEACHERS FINANCIAL PROGRAM (TFP),against which an Advisory has been issued by the Commission on 10 January 2020. The investment schemes being employed by the subject entity involved enticing the public to invest a minimum amount (e.g., Php115,000.00) or assist them to obtain a loan from a bank for the said amount in exchange for products and checks of lesser value. Training seminars on financial literacy and promises of a debt-free life, double net pay, owning a car, travel with family, insurance and savings in the bank are likewise offered under these schemes. The usual victims of these scams are public school teachers, military personnel, police officers, OFWs and other professionals.Below are screenshots of Facebook (FB) posts of its enticement:
It appears that the main strategy of the subject entity is to earn from recruitment, which is clearly unsustainable. There is no showing of any viable products, business or enterprise from which the huge promised profits will be derived from aside from what appears to be the later investments from their member-investors. The schemes of ELITE ONLINE SYSTEM rely heavily on inviting people for a promise of high monetary rewards that can only be achieved through recruitment of more people to participate in the scheme.The public is hereby informed that ELITE ONLINE SYSTEM is not registered with the Commission and isnot authorized to solicit investmentsfrom the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC).Those who act as salesmen, brokers, dealers or agents of the said entity in selling or convincing people to invest in the investment scheme it is being offered including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014).Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.In view thereof, the public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of ELITE ONLINE SYSTEM.The public is further advised NOT TO INVESTor toSTOP INVESTINGin the investment scheme being offered by the subject entityor its representatives.Violators are further warned that aside from the strict penalties imposed by the Commission for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces, the Bayanihan to Heal as One Act (Republic Act No. 11469) also punishes those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on thepublic through scams, phising, fraudulent emails, or other similar acts.Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department(EIPD)at telephone number 8818-6047 oremail at epd@sec.gov.phor visit the EIPD at Ground Floor, North Wing Hall, Secretariat Building, PICC Complex, Pasay City. For the guidance of the public.Pasay City, 09June2020