SEC Facebook

This ADVISORY is prompted by reports and information gathered by the
Commission that individuals or group of persons representing
FREECIT/FREEBIT
,
is
enticing the public, to invest in said en
tity.
Based on the investigation conducted,
FREECIT/FREEBIT
1
declares that it is an
“
internet business support company that uses pioneering internet technology to
vigorously promote the business of their customers. It also claims that investors can
inc
rease their income by investing with it since it has set a higher interest rate than the
one given by the banks. Hence, the longer you hold on to the investment, the higher the
interest rate will be.
”
The deposit time is set to 5 stages: 10 days; 30days;
60 days; 90
days & 120 days. And the interest rate would vary depending on the chosen level. Thus,
the minimum deposit for 10 days is 100, for 30 days is 500, for 60 days is 1,000, for 90
days is 2,000 and for 120 days is 5,000. Thereafter, the deposited
amount and the
interest earned will be automatically added to
your “
gold
” earnings
when the specified
time is reached.
FREECIT/FREEBIT
is offering its membership program to the public starting
with the
en
t
r
y level amount of Php0.00
for their
Capricorn Ac
count
up to
Php2,000,000.00
for their
Sagittarius Account
in exchange for “GOLD” for a daily profit
for as little as 20 GOLD or a monthly profit of 600 GOLD to as much as 154,000 GOLD or
a monthly profit of 4,620,000 GOLD. To sum it up,
the said company i
s offering
“Investment Products” with high yield of returns of up to
706% in just 120 days
as
shown in the table below:
1
Annex “A”
–
FREECIT/FREEBIT’s company profile
Briefly, an “
investment contract”
exists when there is an investment or placement of
money in a
common enterprise with a reasonable expectation of profits to be derived from the
efforts of others
which is prominent in the scheme of
FREECIT FREEBIT.
As such, the Securities Regulation Code (SRC) requires that said offer and sale of
securities must be
duly registered with the Commission and that the concerned entity
and/or its agents should have the appropriate registration and/or license to sell such
securities to the public.
Based on the Commission’s database,
FREECIT/FREEBIT
,
is
NOT REGISTERED
as
a corporation or partnership
and
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 Securi
ties Regulation Code (SRC)
.
Further, the scheme employed by
FREECIT FREEBIT
,
shows indication of a
possible
“Ponzi Scheme”
where
monies from new investors are used in paying “fake
profits” to prior investors
and is designed mainly to favor its top recruit
ers 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 and unsustainable, is
NOT
a r
egistrable
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
NOT TO INVEST
or
to
STOP
INVESTING
in the inves
tment scheme being offered by
FREECIT FREEBIT
,
and its
representatives.
Those who act as salesmen, brokers, dealers or agents of
FREECIT FREEBIT
,
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 of 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 pursua
nt to Section 73 of the SRC
(
SEC vs. 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 (BIR) so that the appropriate penalties and/or taxes be
correspondingly ass
essed.
Should you have any information regarding the operation of
FREECIT FREEBIT
,
and its representatives,
please send your report through email at epd@sec.gov.ph
For the information and guidance of the public.
Pasay City, 03 February 2022