The public is advised to exercise due care and caution in investing their money in this type of scheme being offered by NARCFUNDS/NARCSFUND and/or its agents.
Date Posted: 20 March 2020
The Commission has received information that individuals or group of persons representing NARCFUNDS/NARCSFUND,are allegedly enticing the public to invest/donatein the said entityonline or through the internet. As posted in its website, NARCFUNDS/NARCSFUNDis allegedly being headed by Kwon, Jin-ho, a Korean national who is currently travelling across the globe inorder to further the cause. Said CEO is presently and actively working in four (4) countries, namely; UK, Singapore, Korea and Philippines.A Facebook (FB) Group named NarcFunds PHposted a photo of Certificate of Business Registration Requestpurportedly issued by Thailand’s Department of Business Development and claimed to be the registration certificate of the subject entity in Thailand under the name NARCSYSDEV CO. LTDwith KWON JINHO as its Founder. An online search likewise showed that NARCSYSDEV LTDis registered in UK indicating the name KWON, JIN-HO, CEO as its Officer/Director with nationality ofSpanish, resident in the Philippines, businessman and with date of birth as January 1972.Meanwhile, anFB Group of NARCFUNDS/NARCSFUND, known as Team PH Leaders, is actively being operated by its administrators and/or moderators.The FB posts of its members present the compensation plans of NARCFUNDS/NARCSFUNDas follows:
Further, a video was posted on the said FB Group explaining the marketing scheme of NARCFUNDS/NARCSFUND, to wit:To be a member, a person should donate money in the amount of Four Thousand Pesos (Php4,000.00).One Thousand Pesos (Php1,000.00) of the donated amount will go to the company, and the remaining Three Thousand Pesos (Php3,000.00) will go to the member’s account.To earn money, the member-donor should recruit two (2) persons who will also donate an amount of Four Thousand Pesos (Php4,000.00) in order for him/her to receive One Thousand Pesos (Php1,000.00) for every person he/she recruited.The public is hereby advised to exercise due care and caution in investing their money in thistypeof schemebeing offered by NARCFUNDS/NARCSFUNDand/or its agents. Where the scheme involves the sale of securities to the public, the SRCrequires that the issuing entity must be a registered corporation with the SEC, the said securities offered are duly registered and that the appropriate license and/or permit to sell securities to the public are issued to the corporation and/or its agents, pursuant to the provisions of Sections8 and 28 of the SRC
Those who act as salesmen, brokers, dealers or agents of NARCFUNDS/NARCSFUNDin selling or convincing people to invest in their investmentschemes including solicitationor recruitment through the internetmay likewise beprosecuted,held criminally liableand penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or a maximum penalty of Twenty-One (21) years of imprisonment or both pursuant to Section 73 of the SRC (SECvs. 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 so that the appropriate penalties and/or taxes will be correspondingly assessed.The Commission urges anyone who has knowledge or information about any business transaction of NARCFUNDS/NARCSFUNDand/or its agentsto report such activity tothe Enforcement and Investor Protection Department at telephone number 8818-6047.For the guidance of the public