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The Commission has received information pertainting to the solicitation
activities of
GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS
UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNE
SS (HOW)
(hereinafter referred to as
HOW
).
Based on
the
reports received and
information gathered by the Commission,
HOW
has been enticing the publi
c to invest in the company through the following
membership packages
:
Every membership pack
age has a corresponding position/designation given to
the members as shown in the list above, such as, Marketing Director, Marketing
Coordinator, Marketing Specialist, Marketing Officer and Brand Ambassador. Further,
upon becoming a member, an investor may
opt to get 1 or 3 membership accounts.
One (1) account of the
Gold package
valued at
₱7,000.00, entitles an investor to
receive one of each of
HOW’s
flagship products namely the “Pinemax” and “Bullseye”,
with a
potential maximum income of ₱36,000.00 per day, ₱252,000.00 per week and
₱1,080,000.00 per month
.
For three (3) accounts of the
Gold package valued at ₱21,000.00, a prospective
investor
–
member will get two (2) of each of
HOW’s
products, namely, Pinemax,
Bullseye, Shape and White and Beaute C
,
with a potential maximum income of
₱108,000.00/day, ₱756,000.00/week and ₱3,240,000.00/m
onth.
There are eight (8) ways to earn under the
Gold package
, viz:
1.
Direct Selling
–
member is entitled to 30%
–
35% lifetime discount on all
HOW products;
2.
Direct referral
–
10% in every entry/invite in the organization;
3.
Sales Match Bonus
–
the upline wi
ll earn ₱4,000.00 in every pair, 3 pairs in
1 cycle. Upon completing the 1 cycle, the upline needs to purchase the
Reactivation Package worth ₱4,000.00 to earn for the succeeding pairings;
4.
Leadership Royalty Bonus
Up to 10
th
level
–
3 cycles per day, 3 pa
irs per
day
with potential income of ₱1,800,000.00. The upline will like earn ₱20.00
for every purchase of Reactivation Package of its downline up to 20
th
level;
5.
Products Reward Points
–
earn ranging from 1,750 PRP to 2800 PRP for
every purchase of HOW pr
oducts
at suggested retail price (SRP)
worth
₱3,500.00
depending on the type of membership per month for 18 months.
PRP can be used to purchase HOW products or can be converted into cash.
Five (5) PRP is equivalent to 1 peso;
6.
Sponsor Sales Royalty Rewards
–
earn 262.5 SSRR points per month for 18
months for every purchase of ₱3,500.00 worth of HOW products of the
member he/she sponsored. Five (5) SSRR points is equivalent to 1 peso;
7.
Unilevel earnings
–
earn points in every product or repeat purchase of yo
ur
downline; and
8.
Lifestyle Incentives
–
house and lot, car, travel, savings, etc.
Accordingly,
HOW
lures the public to invest through referral system designed to
encourage its members to recruit others in order to earn profits instead of selling on the
m
erits of its products. Further,
HOW
promises to its investor lucrative lifestyle
incentives including house and lot, cars, travel incentives and savings that can only be
achieved through recruitment of more people to participate in the scheme.
The aforemen
tioned investment scheme of
HOW
has the characteristics of a
Pyramid scheme. The Pyramiding scheme involves securities because investor makes
an investment of money, often nominal, the investor participates in a recruitment
scheme that promises a stream of
profits. The scheme 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.
The Commission has in an earlier Advisory, informed the public that
PYRAMIDING, being fraudulent and unsustainable, is
NOT a registrable security
. The
Securities and Exchange Commission has not and
will never issue a
License to Sell
Securities to the Public
to persons or entities that are engaged in this business. This
scam involves the recruitment of people
and t
hrives with the supply of new recruits to
the scheme. Unfortunately, once the recruitmen
t declines, so does the money.
Per record
s
of the Commission
,
GREAT4 INTERNATIONAL MKTNG.
CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF
ORGANIC WELLNESS (HOW)
although registered with the Commission as a
corporation,
IT IS NOT AUTHORIZED
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 Securities Regulation Code
(SRC) since it has not
secured prior registration and/or license from the Commission as
prescribed under Sections 8 and 28 of the Securities Regulation Code (SRC).
Those who act as salesmen, brokers, dealers or agents of
GREAT4
INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UND
ER THE NAME
AND STYLE OF HOME OF ORGANIC WELLNESS (HOW)
,
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 criminall
y 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 pursuant
to Section 73 of the SRC
(
SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014
).
Furth
ermore, 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 assessed.
In view thereof, the public is hereby advised to exercise caution in dealing wit
h any
individual or group of persons soliciting investments for and on behalf of
GREAT4 INTERNATIONAL MKTNG CORPORATION DOING BUSINESS UNDER THE NAME
AND STYLE OF HOME OF ORGANIC WELLNESS (HOW)
.
The public is further advised
NOT TO INVEST
or
STOP INVESTI
NG
in any investment scheme being offered by aforesaid
entit
y.
Should you have any information regarding the operation of
GREAT4 INTERNATIONAL MKTNG CORPORATION DOING BUSINESS UNDER THE NAME
AND STYLE OF HOME OF ORGANIC WELLNESS (HOW)
,
and its representa
tives,
please
send your report
to the Enforcement and Investor Protection Department (EIPD) at
epd@sec.gov.ph
.