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PROJECT 1.8 FINANCIAL PROGRAM (PROJECT 1.8)
PROJECT 1.8 FINANCIAL PROGRAM (PROJECT 1.8) is not registered with the Commission and is not authorized to solicit, accept or take investments from the public

Date Posted: 18 May 2021

PROJECT 1.8 FINANCIAL PROGRAM

PROJECT 1.8 FINANCIAL PROGRAM

SEC Facebook

The Commission has received reports regarding the operation of an entity named
PROJECT 1.8 FINANCIAL PROGRAM (PROJECT 1.8)
.
PROJECT 1.8
, founded and headed by
Kristofer Paul F. Pasag
,
a
.
k
.
a
.,
Kyle Falcon
and
Maria Delmar A. Fernandez
,
a
.
k
.
a
.,
Thalia Fernandez
, claims to be a business partner
of
Unlimited Network of Opportunities International Corp. (UNO)
.
The said entity
purportedly aims to help the public, particularly government employee
s, earn additional
income and achieve debt clearance.
This would be accomplished allegedly through the
investor’s registration/membership with
UNO
, purchase of a package of
UNO
products, and
referral/recruitment of new members.
Investors are promised a “
surebol” or guaranteed
amount of PhP450,000.00 on their fifth month of participation upon meeting the said
conditions.
Based on the information gathered by the Commission, one must sign up with
UNO
through
PROJECT 1.8
and invest a minimum amount of PhP8,9
98.00 for a
Starter Package
in
exchange for
UNO
products (which were reiterated as for personal use only), PhP120,000.00
worth of family accident insurance for seven family members (including the investor), and a
“free website” where the crediting of earne
d commission/income may be monitored.
The investor must also recruit/refer four (4) new members, for which he will
immediately earn PhP3,000.00.
Using the binary system, the investor earns Php1,500.00 for
every pair of members who joins his group, and hi
s profit increases as each member recruits
four new members to the group.
According to a video being circulated through social media,
the investor’s job ends after recruiting four members; his earnings would continuously pour
in since his downlines
will d
o the work for him.
The investor would supposedly receive
PhP450,000.00 on his fifth month.
He would have earned PhP705,000.00 from the time he
signs up until the fifth month, and will continue to receive PhP450,000.00 monthly from the
sixth month until
the twelfth month, netting a total of PhP3.86 Million in one year.
Upon
analysis, it is important to note that in order to earn PhP3.86 Million in one year, one must
have
8,388,608 pairs of referrals
as illustrated below:
INVESTOR
MONTH
LEFT SALES
GROUP NUMBER OF
REFERRALS
RIGHT SALES GROUP NUMBER
OF REFERRALS
EARNINGS
1
st
month
2 main referrals
2 main referrals
PhP3,000.00
2
nd
month
8
8
PhP12,000.00
3
rd
month
32
32
PhP48,000.00
4
th
month
128
128
PhP192,000.00
5
th
month
512
512
PhP450,000.00
6
th
month
2,048
2,048
PhP450,000.00
7
th
month
8,192
8,192
PhP450,000.00
8
th
month
32,768
32,768
PhP450,000.00
9
th
month
131,072
131,072
PhP450,000.00
10
th
month
524,288
524,288
PhP450,000.00
11
th
month
2,097,152
2,097,152
PhP450,000.00
12
th
month
8,388,608
8,388,608
PhP450,000.00
TOTAL EARNINGS
IN ONE YEAR
PhP3,855,000.00
According to another video obtained online,
PROJECT 1.8
also offers the
Project 1.8
Package
for an investment capital of PhP135,000.00
in exchange for a total profit of PhP1.89
Million plus a brand new car in as early as the third month of membership.
The maximum
profit that an investor could make per month is PhP6.7 Million.
The mechanics are basically the same with the
Starter Packag
e
as the investor needs
to recruit four new members and the said new members would have to recruit four new
associates of their own.
The investor would allegedly earn PhP90,000.00 plus a travel
incentive to Boracay or El Nido for his four recruits on the
first month, and PhP360,000.00
plus a travel incentive to Singapore when his recruits enlist new members on the second
month.
On the third month, the investor would earn PhP1.44 Million plus a brand new car
upon registration of his second level downline’s
recruits, bringing his total monetary profit
to PhP1.89 Million in three months.
It is also possible to upgrade one’s
Starter Package
to a
Project 1.8 Package
by
investing an additional PhP126,000.00.
The aforementioned schemes focus on the referral and recruitment of new members
to gain profit.
There was never any mention to market UNO products to earn more
income.
Rather, the campaign concentrates on the recruitment of downlines.
The public is her
eby advised to exercise due care and caution in investing their money
in this type of scheme being offered by
PROJECT 1.8
and/or its agents.
In the instant case,
the scheme of
PROJECT 1.8 FINANCIAL PROGRAM
has the characteristics of a Pyramid scheme. The Pyramiding
scheme
involves securities because for payment of a sum of money, often nominal, the
investor participates in a recruitment scheme that promises a stream of profits. The scheme
that requires recruitment in a two

pronged structure takes the form of a pyramid, one
that
grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Here,
the recruitment fees collected from new recruits are used to pay the recruiting commissions
to earlier recruits.
As the schemes of
PROJECT 1.8
involve th
e offer and sale of securities to the public,
the Securities Regulation Code requires 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 o
ffer and sell securities to the public are issued to the
corporation and/or its agents, pursuant to the provisions of Sections 8 and 28 of the SRC.
The public is hereby informed that
PROJECT 1.8 FINANCIAL PROGRAM
is not registered with the
Commission and is not authorized to solicit, accept or take investments from the public
nor
to issue investment contracts and other forms of securities defined under Section 3 of the
Securities Regulation Code (SRC)
since it doe
s not have a secondary license issued by the
Commission to solicit investments or other securities from the public for whatever purpose
as prescribed under Sections 8 and 28 of the SRC.
Those who act as salesmen, brokers, dealers or agents of
PROJECT 1.8 FINANCIAL PROGRAM
in selling or
convincing people to invest in the investment scheme being offered by these entities
including solicitations and recruitment through the internet may likewise be prosecuted and
held criminally liable under Section 28 of the SRC and 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, as held in the case of
Securities and
Exchange Commission vs. Oudine Santos
(G.R. No. 19554
2, March 19, 2014).
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
PROJECT 1.8
. The
public is further advised
NOT TO INVEST
or
STOP INVESTING
in any investment scheme
being offered by the aforesaid entity/individuals.
Should you have any information regarding any investment solicitation by individuals
or group of individuals representing
PROJECT 1.8 FINANCIAL PROGRAM
, please send your report to the
Enforcement
and Investor Protection Department through email at
epd@sec.gov.ph
.
To know how to detect investment scams, you may refer to the following link:
https://www.sec.gov.ph/advisories

2020/mag

ingat

sa

scam/
.
For the guidance of the public.
Pasay City,
18
May 2021