SEVEN STAG INTERNATIONAL OPC is not authorized to solicit investment/placements from the public nor to issue investment contracts and other forms of securities
Date Posted: 4 May 2021
SEVEN STAG INTERNATIONAL OPC
Based on
numerous reports and
information gathered by the Commission
,
the
entity operating under the name
SEVEN STAG INTERNATIONAL OPC
, headed by
VIERNON P. SUMINIG
,
is found to be
engaged
in inv
estment
–
taking activities in the
Philippines which is
NOT AUTHORIZED
by the Commission. To show:
SEVEN STAG INTERNATIONAL OPC
is enticing the public to invest
as
shareholder of their company, with a promise of daily encashment with amounts
varying from the “Levels
of Shareholding” paid by the investor
. According to the
company, the promised income are to be generated from
online
sabong
, fish far
m and
crypto trading activities
.
As
advertised
:
As posted online,
SEVEN STAG INTERNATIONA
L OPC
is apparently utilizing
the multi
–
level marketing scheme in order to gain more profit from the public which is
particularly described as follows:
a.
Newbie Shareholder
–
An investor pays a minimum amount of
Five
Hundred Sixty Pesos (Php560.00)
with a
promise of 15%
earnings from
every direct affiliate and from the 2
nd
to 5
th
receives a daily reward of
Forty
–
Four Pesos (Php 44.00)
from Indirect Affiliate;
b.
Apprentice Shareholder
–
An investor pays a minimum amount of
Five
thousand Six Hundred Pesos (Php
5,600.00)
with a promise of 20%
earnings from every direct affiliate and receives
Four Hundred Fo
rty
Pesos (Php 440.00)
as daily rewards from every indirect affiliate from 2
nd
up to 5
th
levels;
c.
Manager Shareholder
–
An investor pays a minimum amount of
Fi
fty
–
Six
Thousand Pesos (Php 56,000.00)
with a promise of 25% earnings for
every direct affiliate and infinite levels for indirect affiliates with a daily
reward of
Four Thousand Four Hundred Pesos (Php 4,400.00)
;
and
d.
Senior Shareholder
–
an investor pays
Five Hundred Sixty Thousand
Pesos (Php 560,000.00)
with a promise of 30% earnings for every direct
affiliate and infinite levels for indirect affiliates with a daily reward of
Forty
–
four thousand Pesos (Php 44,000.00)
.
Aside from earn
ings explained above, the managers and senior managers will
receive an additional 30% and 70 % from the “Stag Pool Shares”, respectively. As
Illustrated:
Aside from referral bonuses, SEVEN STAG INTERNATIONAL OPC promises
a
DAILY PASSIVE INCOME
of
Forty Four Pesos (Php44.00)
for the
minimum
investment Php560.00
and
Forty Four Thousand Pesos (Php44,000.00)
for a
Php560,000.00 investment
.
T
he income generated by the company does not
appear to
come from
legitimate business sources but solely from the
“Levels of Shareholdings” being paid
by its current investors/shareholders and by the newly recruited members. These false
representations of lucrative return of investment within a short period of time from
apparently legitimate sources effectively lures
the public to invest their hard
–
earned
money to their company. The operations of this entity
is a
“
Ponzi Scheme
,
”
an
investment fraud that involves the payment of purported returns to existing investors
from funds contributed by the new investors.
Apply
ing the
Howey Test
as
explained in the case of
Power Homes Unlimited
vs. SEC
(G.R. No. 164182, February 26, 2008)
,
SEVEN STAG INTERNATIONAL
OPC’s
scheme
being offered
to
the public
,
partakes of the nature of securities in the
form of
an inve
stment contract
which is defined as
an investment or placement of
money in a common enterprise with a reasonable expectation of profits to be derived
from
the efforts of others.
Thus,
the Securities Regulation Code (SRC) requires that
these securities are duly registere
d 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.
Although
SEVEN STAG INTERNATIONAL OPC
is
registered with the
Commission
as a
corporation
,
IT IS NOT
AUTHORIZED
to solicit
investment/placements from the public nor to issue investment contracts and
other forms of securities since it has not secured prior registration and/or license
from the Commission as prescribed under Sec. 8 and 28 of
the Securities
Regulation C
ode.
Further,
SEVEN STAG INTERNATIONAL OPCs
investment
–
solicitation
acti
vities appear to be contrary to
and
unrelated to its declared primary purpose of
engaging in the business of manufacturing, trading, direct selling, marketing, buy and
sell of gadg
ets such as cellphone, tablet, prepaid
sim card, computer peripherals and
health care products, home care products, beauty/personal product care products,
foods, and beverages and to provide services and benefits to its loyal product users
and distributors
,
Therefore,
SEVEN STAG INTERNATIONAL OPC’s
lack of prior registration
pertaining to its securities with the Commission make its activities illegal, fraudulent
and
injurious to the investing
public.
T
he issuance of a Certificate of Incorporation only grants the said entity juridical
personality but
does not constitute an authority or license for the corporation to engage
in activities such as solicitation of investments, issuance of investments contrac
ts,
offering and sale of investment contracts that require a secondary license
.
Also
, t
he offering and selling of securities in the form of investment contracts
using the
“Ponzi Scheme”
which is fraudulent and 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.
Hence, the
public is
strongly
advised
NOT TO INVEST
or
STOP INVESTING
in any scheme offe
red by
SEVEN STAG INTERNATIONAL OPC
or such other entities
similarly engaged in investment contracts without prior
registration from the
Commission.
Accordingly, the Commission warns
all unscrupulous individuals and/or entities
t
hat
strict penalties are imposed
for v
iolat
ions of
the
Securities Regulation Code,
the Revised Corporation Code, and such other rules and regulation enforce
d by
the Commission
.
T
hose who act a
s salesmen, brokers, dealers,
agents
or representatives
of
SEVEN STAG INTERNATIONAL OPC
,
including
its sole stockholder
–
director
–
president,
V
IERNON P. SUMINIG
,
nominee
EDWARD B. DELA CRUZ,
alternate
nominee
, MARYGRACE A. BONIFACIO
,
the operators of its
Facebook Page or
enablers and influencers of similar social media
,
in
selling or convincing people to
invest in the
ir
investment scheme
offered
including solicitations and recruitment
through the internet may
likewise be
criminally prosecuted and penalized with a
maximum fine of Five Million pesos (P5,000,000.00) or a penalt
y of Twenty
–
one
(21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC.
In the same manner, t
hose who invite or recruit others to join or invest in such
venture or offer investment contracts or securities to the public
similar to an
d the
operators of the
SEVEN STAG INTERNATIONAL OPC
ma
y incur criminally liability,
or otherwise be sanctioned or penalized accordingly
as held
by the Supreme Court in
the case of
S
EC
vs. Oudine Santos
(G.R. No. 195542, 19 March 2014).
T
he names of all those involved will
also
be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penalties and/or taxes be assessed
correspondingly.
Should you have any information regarding any investment solicitation activity
by any
individual or group of individuals representing
SEVEN STAG INTERNATIONAL OPC
, please send your report to the EIPD at [email protected].
For the guidance of the public.
Pasay City,
4
May 2021