SEC Facebook

This
ADVISORY
is prompted by reports
received
and information gathered by the
Commission that individuals or group of persons representing
CLOUD NETWORK
are
enticing the public to
invest in said entity.
Based on reports from the public
,
social media posts and the website
of
CLOUD NETWORK
,
the
latter
is enticing the public to invest in the said entity
with
a promise of
a
Five Percent (5
%)
daily payout for 44
days
or Two Hundred Twenty Percent (220%) return of
investment in 44 days.
An investor can also earn through direct referral of investors
.
The scheme of
CLOUD NETWORK
partakes that of
offering and sale of securities in
the form of investment contracts to the public as its investors need not exert any effort other
than to
invest or place monies in its operation in order to receive profits.
The Securities Regulation Code (SRC) requires that the offer and sale of securities must
be duly registered with the Commission and that the concerned entity and/or its agents should
ha
ve the appropriate registration and/or license to sell such securities to the public.
However, based on the Commission’s database,
CLOUD NETWORK
is
NOT REGISTERED
as a
corporation or partnership a
nd
OPERATES WITHOUT THE NECESSARY LICENSE AND/OR
AUTHORITY
to solicit, accept or take investments/placements from the public nor to issue
investment contracts and other forms of securities defined under Section 3 of the S
RC
.
Further, the scheme employed by
CLOUD NETWORK
, shows indication of a possible
“Ponzi Scheme”
where
monies from new investors are used in paying “fake profits” to prior investors
and is
designed main
ly to favor its top recruiters and prior risk takers and is detrimental to subsequent
members in case of scarcity of new investors.
The offering and selling of securities in the form of investment contracts using the
“Ponzi Scheme”
which is fraudulent an
d unsustainable, is
NOT
a registrable security.
The
Commission will not issue a License to Sell Securities to the Public to persons or entities
that are engaged in this business or scheme
.
In view thereof, the public is hereby advised to
STOP INVESTING
in the investment
scheme being offered by
CLOUD NETWORK
and its
representatives.
Accordingly, the Commission warns all unscrupulous individuals and/or entities that
strict penalties are imposed
for v
iolations of the
Securities Regulation Code, the Revised
Corporation Code, and such other rules and regulation enforced by the Commission
.
Those who act as salesmen, brokers, dealers or agents of
CLOUD NETWORK
in selling or
convincing people to invest in the investment scheme being offered by the said entity including
soliciting investments or recruiting investors through the internet may be held criminally liable
under Section 28 o
f 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
).
Should you have any information
regarding the operation of
CLOUD NETWORK
and its
representatives,
please send your report through email at epd@sec.gov.ph
For the information and guidance of the public.
Pasay City, 05 July 2021