SEC Facebook

Based on the information gathered by the Commission, a number of individuals
or group of persons claiming to represent
KAIZEN UNLIMITED PHILIPPINES
(“
KAIZEN
”) whose Grand Upline is a certain
KEN NICHOLAS
, are enticing the public
to invest their money in said entity.
As posted online,
KAIZEN
is offering investment
s
, allegedly to be traded in
cryptocurrencies, wh
ere
investors need only to invest an amount of at least 10 US$ or
equivalent to Php500.00 and shall earn daily profit equivalent to
3.5%
daily
for a total
of 50 days
or for a
total earnings of 175% in just a matter of 50 days
.
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As the above described scheme of
KAIZEN UNLIMITED PHILIPPINES
through
KEN NICHOLAS
involves
the offering and sale of securities to the public, the Securities
Regulation Code (SRC)
requires
that these securities are duly registered and that the
concerned c
ompany and/or any of its agents must have the appropriate registration
and/or license to sell such securities to the public pursuant to Section 8 of the SRC.
KAIZEN UNLIMITED PHILIPPINES
is
not registered
with the Commission
either as a corporation or as a partnership. Having no primary registration and as the
schemes it employ
s show
indication of a
“Ponzi Scheme”
where monies from new
investors are used in paying
“fake profits”
to prior investors and is
designed mainly
to favor its top recruiters and prior risk takers and is detrimental to subsequent
members in case of scarcity of new investors
,
with
more
reason that
it cannot be
granted a secondary license
that would allow it to solicit investment from the public.
Please be reminded that the offering and sale of such securities in the form of
investment contracts using the
“Ponzi Scheme”
is fraudulent and unsustainable and
is
NOT a registrable securit
ies
.
The Commission will NOT ISSUE a Permit to Offer
and Sell Securities to the Public to persons or entities that are engaged in this
business or scheme
.
KAIZEN UNLIMITED PHILIPPINES
is
NOT REGISTERED
as a Virtual Asset
Service Provider (VASP) with the
Bangko Sentral ng Pilipinas (BSP)
NOR
DOES IT
HAVE A CORRESPONDING CERTIFICATE OF AUTHORITY
as a Money Service
Business (MSB) required under the Guidelines for Virtual Asset Service Providers
(BSP
Circular No. 1108, Series of 2021).
Likewise, its name
DO
ES NOT APPEAR
among those listed as registered MSBs
as of January 2021 with the Anti
–
Money Laundering Council under the Anti
–
Money
Laundering Act, as amended
.
Accordingly, the Commission warns all unscrupulous individuals and/or entities
that
strict penalties are imposed for violations of the Securities
Regulation Code,
the Revised Corporation Code
of the Philippines
and such other laws, rules and
regulations enforced by the Commission
.
Hence, those who act as salesmen, brokers, dealers or age
nts or claim to act as
such of
KAIZEN UNLIMITED PHILIPPINES
and
KEN NICHOLAS
in selling or
convincing people to invest in the investment scheme being offered by said entity
including solicitations and recruitment through the internet
may 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 penalty of Twenty
–
one (21) years of
imprisonment or both pursuant to Section 73 of the SRC.
Also, those who invite or recruit
others to join or invest in such venture or offer
investment contracts or securities to the public may incur criminal liability, or otherwise
be sanctioned or penalized accordingly as held by the Supreme Court in the case of
Securities and Exchange Commis
sion vs. Oudine Santos (G.R. No. 195542, 19 March
2014)
.
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Further, 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 advised
NOT TO INVEST or STOP INVESTING
in
any investment scheme being offered by
KAIZEN UNLIMITED PHILIPPINES
through
KEN NICHOLAS
and exercise caution in dealing with any individuals or group of
persons soliciting
investments or recruiting investors for and on behalf of
KAIZEN
UNLIMITED PHILIPPINES
as well as to any other entities having the same or similar
schemes
and to exercise caution in dealing with any individuals or group of persons
soliciting investments for
and on behalf of it.
Should you have any information regarding any investment solicitation by any
individuals or group of individuals on behalf of
KAIZEN UNLIMITED PHILIPPINES
,
please send your report to the ENFORCEMENT AND INVESTOR PROTECTION
DEPARTMEN
T at
epd@sec.gov.ph
.
For the guidance of the public.
Pasay City,
11 January
202
2