SEC Facebook

The Commission
has received information that
individual
s
or group of persons
representing an entity named
S.O.S. SYSTEM/SOS SYSTEM
are
enticing the public to invest
their money in the said entity with the promise of high monetary rewards or profits.
Based on the reports from the public,
S.O.S
.
SYSTEM/SOS SYSTEM,
an entity claiming
to be under U
nlimited Network of Opportunities Int’l. Cor
p. (U
NO
),
has been inviting the
public to invest in their company.
In its
online a
dvertisement
,
S.O.S. SYSTEM
has been inviting the public to invest
Php
8,998.00 (1 Account) for Starting Package
to receive
the following: UNO products worth Php
9,500.00;
Php 120,000.00 Family Accident Insurance; Business Kit; Online Website 24/7;
Marketing Materials; S.O.S System (Scorpions Online Support System); 3% Royalty;
Inheritance Income; Lifetime Discount (30%
–
50% off); Free Online Training; Free Travel
Incentive
s; Online Store and a
maximum potential income P
hp
450,000.00 per month
.
In
its
online
video
presentation
which
can
be
found
at
https://www.facebook.com/messenger_media/?thread_id=100000820531226&attachmen
t_id=1159796534556
078&message_id=mid.%24cAAAB95bZKU2EgeqlBV
–
UKUcLvLld
,
SOS SYSTEM
is enticing the public to join and invest Php 8,998.00
to receive
the following:
Referral fee of Php 1,250.00; Sales Matching Bonus (Left & right pair)
at
Php 1,500.00 per
pair; 3% Income f
rom the income of the person you have referred.
Accordingly, the member
–
investor will earn through recruitment and/or referral rather than selling/reselling of
products
.
Further, the Facebook p
age,
S.O.S
.
SYSTEM ONLINE BUSINESS
is enticing the public
to invest by posting and advertising the income
being
received by one of their members.
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.
Stripped to its core, the scheme of
S.O.S
.
SYSTEM/ SOS SYSTEM
with its focus on
recruitment, is undoubtedly a pyramiding scheme masquerading as a
Multi
–
Level Marketing
program
and therefore, involves the offer and sale of securities in the nature of investment
contract to the public.
The
p
yramiding scheme involves securities because for payment of a sum of
money, often nominal, the investor partic
ipates in a recruitment scheme that promises a stream of
profits. The scheme that requires recruitment in a
binary or
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 public is hereby informed that
S.O.S. SYSTEM/ SOS SYSTEM
is
not registered
with the Commission and is
not authorized to solici
t investments
from the public, not
having secured prior registration and/or license to sell securities or solicit investments as
prescribed under Section 8 of the Securities Regulation Code (SRC).
Those who act as salesmen, brokers, dealers or agents of
the said entity in selling or
convincing people to invest in the investment scheme it is being offered including soliciting
investments or recruiting investors through the internet may be held criminally liable under
Section 28 of the SRC and penalized wit
h 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
).
Furthermore, the names of all those involved will be report
ed 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 with any
individual or group of persons soliciting investmen
ts for and on behalf of
S.O.S.
SYSTEM/ SOS SYSTEM.
The public is further advised
NOT TO INVEST
or to
STOP
INVESTING
in the investment scheme being offered by the subject entity or its
representatives.
Should you have any information regarding the operation
of the subject entity,
please call the Enforcement and Investor Protection Department (EIPD) at telephone
number 8818
–
6047 or email at
epd@sec.gov.ph
or visit the EIPD at Ground Floor, North
Wing Hall, Secretariat Buil
ding, PICC Complex, Pasay City.
For the guidance of the public.
Pasay City, 27 January 2022