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Based on the information gathered by the Commission, the operators of the debunked BUILDING OUR SUCCESS STORIES NETWORK INC.1(“Boss Network”) is now using KAIZEN MARKETING ENTERPRISE under the control of its President,Mr. Gerald Alvarez Rivas2to continue its illegal activitiesby offering to the public its Certified Entrepreneur Online (CEO) program. As posted online, CEOis being offered under the cloak of multi-level-marketing (MLM) by availingofeither:1With a Cease and Desist Order (https://www.sec.gov.ph/cdo-2020/building-our-success-stories-network-inc-boss-network-2/)2The Vice-President of Boss Network
The company has thirteen (13) ways to earn:
1.Direct Sellingwhere a member shall earn up to 60% by direct selling of the company’s products.2.Personal Rebateswhere a member is entitled to the following rebates whenever he personally purchases Kaizen products.ProductAmount of RebateBuah Merah GoldPhp35.00Kaizen Gourmet CoffeePhp35.00Kaizen Fit Black CoffeePhp20.00Grape Seed Oil ExtractPhp100.003.Company Product Sales Rewards (CPSR) where a member shall earn from company product package and purchase sales profit, to wit:a.Global Linear Reward –a member shall earn profit from his/her share in the ten percent (10%) of the price of the availed package divided among the members in proportion to their UBP allocation;b.Product Sales Profit Sharing –a member shall earn profit from his/her share in the ten percent (10%) of the price of product arising from repeat orders divided among the members in proportion to their UBP allocation;c.Sponsor Support –a member shall earn profits equivalent to 5%, 3% and 2% of the pairing income earned by the member’s immediate (up to 3 levels) sponsors, respectively.Under this scheme, a member shall be entitled to the respective package’smaximum CPSR income despite having no recruits. Under this method, a member can earn up to the maximum amountof the CPSR. However, a membermay upgrade to a higher package to maximize the profit.4.Wholesale Income where a member shall earn wholesale income everytime he/she personally sponsor a person whowill availof theproduct package. BronzePhp100.00SilverPhp300.00GoldPhp700.00ElitePhp1,000.00PlatinumPhp1,500.00SapphirePhp3,100.00RubyPhp6,300.00
EmeraldPhp12,700.00DiamondPhp25,500.00Double DiamondPhp100,000.005.Product Package Cycle Rewardwhere a member shall earn one hundred fifty pesos (Php150.00) from every 15-point value paired from a member’s leg (left and right) up to the maximum pairing income per day regardless of the level of generations.PackagesPoint ValueMaximum Income per dayBronze15 point valuePhp3,000.00Silver45 point valuePhp6,000.00Gold105 point valuePhp10,500.00Elite150 point valuePhp15,000.00Platinum225 point valuePhp15,000.00Sapphire465 point valuePhp19,500.00Ruby945 point valuePhp24,500.00Emerald1,905 point valuePhp28,500.00Diamond3,825 point valuePhp33,000.00Double Diamond7,650 point valuePhp76,500.006.Leadership Bonus where an Elite member shall be entitled to earn 10% of product-package cycle rewards of his/her elite direct recruits. 7.Ranking where a member shall earn the following whenever he is promoted:RankNo. of required directRecruitAdditionalIncomeon Cycle RewardOther incentive/sDreamer12Php2,000.00n.a.Builder10Php5,000.00n.a.Achiever8Php10,000.00Asian TravelDirector6Php15,000.00Europe TravelExecutive Director4Php20,000.00Rolex watchPresidential Director3Php30,000.00Mercedes Benz8.Lifestylewhere a member’s 5thproduct-package cycle rewards is equivalent to a corresponding point value which when accumulated can be converted to high-end accessories such as LV shoes, Rolex watch, Hermes belt, Gucci bag, and travel tours.9.Repeat Purchase Rewards where a member shall earn Php150.00 for every repeat product purchases equivalent to a matched 15-point value, in accordance with the table under the Product Package Cycle Rewardunder his/her structure;
10.Infinity Product Package Rewards where a member shall earn the followingincome (depending on the purchase of package of his/her downline) for every first (1st) two invites of his direct referrals’ recruits beginning from his 3rddownline.BronzePhp50.00SilverPhp150.00GoldPhp350.00ElitePhp500.00PlatinumPhp750.00SapphirePhp1,550.00RubyPhp3,150.00EmeraldPhp6,350.00DiamondPhp12,750.00Double DiamondPhp25,500.0011.Incentives where a member shall earn incentive points everytime he/she has a matched product package cycle reward under his direct recruits.12.Product Royalty Rewards where a member whoaccumulated points shall earn the following:Total Retirement Point Value (RPV)Earnings10,000Php50,000.00100,000Php500,000.001,000,000Php5,000,000.0010,000,000Php50,000,000.00TOTALPhp55,550,000.0013.Business Legacy where a member can pass the business from generations to generations including all the benefits that are being enjoyed currently by the member.Stripped to its core, the aforementionedschemeof KAIZEN MARKETING ENTERPRISE throughits CEO program, with its focus on recruitment,is undoubtedlya pyramiding scheme masquerading as a Multi-Level Marketing program and therefore, involvesthe offer and sale of securities in the nature of investment contract to the public. The Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public pursuant to Section 8 and 28 of the SRC.Per records of the Commission, KAIZEN MARKETING ENTERPRISE IS NOTregistered either as a corporation oras a partnership with the Commission, and consequently, IT CANNOT secure a secondary license to solicit, accept, or take investments/placements from the public nor
to issue investment contracts and other forms of securities under Section 3 of the Securities Regulation Code (SRC) as prescribed under Sections 8 and 28 of the Securities Regulation Code (SRC). Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such forthe offering of KAIZEN MARKETING ENTERPRISE in selling or convincing people to invest in the investment scheme being offered by said entityincluding solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.Also, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of Securities and Exchange Commission vs. Oudine Santos(G.R. No. 195542, 19 March 2014).The public is advised NOT TO INVESTor STOP INVESTINGin any investment scheme being offered by any individual or group of persons allegedly for or on behalf of KAIZEN MARKETING ENTERPRISE to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of them. Should you have any information regarding the operation of the subject entity, please call the Enforcement and Investor Protection Department at telephone numbers (02) 8818-6047or send your report to the EIPD at epd@sec.gov.ph.For the guidance of the public.Pasay City, 13August2020