SEC Facebook

The Securities and Exchange Commission has received information that
individuals or group of individuals representing
WELLCONS UNLIMITED SYSTEMS,
INC. (WELLCONS)
are enticing the public to invest their money in the said entity with
the promise of monetary rewards or profits.
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Records of the Commission show
that
WELLCONS UNLIMITED SYSTEMS, INC.
(WELLCONS)
was registered
with the Commission
on 19 April
2021 with the following
primary
purpose:
Its principal office is located at
P 15A, National Highway, Bagontaas, City of
Valencia, Bukidnon Region X
. Based on an online post
s
of its members, the company is
headed by
MERARI
PAILAGAO
.
Moreover,
WELLCONS FOOD SUPPLEMENT TRADING
is registered with The
Department of Trade and Industry (DTI) under the name of its owner,
MERARIE
ESPUERTA PAILAGAO
,
however, its business scope is only within the
City/Municipality of Region X (Northern Mindanao
)
–
Bukidnon, City of Valencia.
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The persons involved in WELLCONS are enticing prospective individuals to join the
company through the following schemes:
I.
BINARY SYSTEM
Under this system, interested individuals can choose from three membership
packages with the corresponding membership fees:
a.
Fast
–
track
–
2,500.00 (which were offered at its promo price of P1, 890.00);
b.
Global
–
5,890.00; and
c.
Executive
–
13,890.00.
BINARY ENTRY PACKAGE (Benefits
/ways of earnings
)
Entry
Package
Package
Amount
Points/
Package
Direct
Referral
Bonus
Indirect
Referral
Bonus
Sales
Match
Bonus
Direct
Sales
Match
Bonus
FAST TRACK
P2,500.00
50 pts.
P200.00
P50.00
P500.00
P250.00
GLOBAL
P5,890.00
150 pts.
P400.00
P100.00
P1,500.00
P500.00
EXECUTIVE
P13,890.00
300 pts.
P800.00
P200.00
P3,000.00
P1,000.00
For the above
–
mentioned membership packages
, there
are five ways to earn:
1.
50% Discount in all wellness products;
2.
Direct Referral
Bonus
–
earn for every direct invites;
3.
Indirect Referral Bonus
–
earn for every invites of invites;
4.
Sales Match Bonus
–
earn
for every left and right invites of your structure; and
5.
Direct Matching Bonus
–
earn
50%
for every match
even if only
on one
–
sid
e of the
structure.
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5
Additional features:
►
Points earned
are convertible or redeemable to assorted grocery items,
a
ppliances, etc. through the
P
angkabuhayan
S
ystem
►
Maximum of seven accounts.
►
Earn Pairing Bonus even in one leg
►
Maximum pairs/day to earn
with required 12 hrs and 24 hrs entry cycle

Fast Track
–
12 pairs, 6 pairs per cycle

Global
–
18 pairs, 9 pairs per cycle

Executive
–
48 pairs, 24 pairs per cycle.
►
Maximum earnings per day

Fast Track
–
P9,000.00

Global
–
P15,000.00

Executiv
e
–
P32,000.00
II.
PANGKABUHAYAN SYSTEM
–
Passive & Active Income
Note: To avail the benefits of the Pangkabuhayan System, one must have a Binary
account.
FEATURES:
►
Each
Pangkabuhayan
Package
comes
“with consumable products”
►
Points can be exchanged for
grocery items which are also consumable goods.
►
Profit sharing every time WELLCONS earns.
►
Accounts can be upgraded for a higher Return of Purchase (ROP).
►
E
arnings even without invites where
investor
–
members
do not have to do
anything
, thus, known as the c
ompany’s PASSIVE INCOME
Below are the packages under the
Pangkabuhayan
System where the flagship of the
ways of earnings
is
its so
–
called
“Daily Reward
.
”
The purported “Return of Purchase” is
in reality a return
–
on
–
the
–
capital (which in turn referred
below as “Amount Purchase”)
.
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Return of Purchase(ROP) or Maturity. After maturity an individual can
repurchase the same package.
Hereunder are the four(4) ways of earnings under the
Pangkabuhayan
System:
DAILY REWARDS
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The
above
scheme is actually the
“double
–
your
–
money”
scheme of the company
where the package/s availed of by the member will earn Php3,000.00, Php5,000.0
0,
and
Php10,000.00 for Bronze (worth Php1,500.00), Silver (worth Php2,500.00), and Gold
(worth Php10,000.00), respectively. However, the guaranteed income of Php3,000.00,
Php5,000.00, and Php10,000.00 shall be given to the investor based on a daily rewards
of
Php15.00, Php25.00, or Php50.00 depending
on
the package
availed of
,
which total
guaranteed income could be earned
within more or less six (6) months
.
PROFIT SHARING; LOYALTY BONUS; GLOBAL POOL BONUS:
Investor
–
members belonging to the company’s T
op 20,000 members shall be entitled
to
Profit Sharing
equivalent to 20% of the company’s earnings to be distributed among
them
,
Loyalty Bonus
equivalent to 10% of the company’s earnings shall be distributed
among the Top 5,000 members, and
Global Pool
Reward
equivalent to 5% of the
company’s earnings shall be distributed among the Top 1,000 members.
Further, the company has an Active Members’ Income which is applicable to those
who availed of the
Pangkabuhayan
System. This i
s to obtain a faster maturit
y of one’s
account, thus,
a shorter term to earn the guaranteed income.
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Additional Earnings for every
Pangkabuhayan
package purchased by
invites ( Level 1) and the invites of Level 1 up to Level 5.
Under these scheme, an investor
–
member shall be entitled to Leadership Bonus
equivalent to 10% of his/her direct recruits’ (Level 1) repeat availment of
Pangkabuhayan
System and 1% for Level 2’s and 0.5% for Level 3’s , 4’s, and 5’s recruits. On the other
hand,
Infinity Bonus can be enjoyed by any member of the company.
Accordingly,
WELLCONS UNLIMITED SYSTEMS, INC.
lures the public to invest in
their scheme mainly through referral system designed to encourage its members to recruit
others in order to ear
n income instead of selling on the merits of its products.
The scheme of
WELLCONS UNLIMITED SYSTEMS, INC.
is a hybrid of a pyramiding
and a ponzi scheme
. The Pyramiding scheme involves securities because for payment of
a sum of money, often nominal, the
investor participates in a recruitment scheme that
promises a stream of profits. The scheme that 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 t
o the scheme. Here, the recruitment fees collected from new
recruits are used to pay the recruiting commissions to earlier recruits.
Further, applying the
Howey Test
, the scheme of
WELLCONS UNLIMITED SYSTEMS, INC.
involves the offering and sale of securities in the form of Investment
Contracts, to the public because the investors need not exert any effort other than to
invest or place monies in
WELLCONS UNLIMITED SYSTEMS, INC.
in order to generate
income. This is h
ighlighted through the
Pangkabuhayan
System of the company.
Since this scheme involves the sale of securities to the public, the Securities
Regulation Code (SRC)
requires that these securities are duly registered with the
Commission and that the conce
rned 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.
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Per record of the Commission,
WELLCONS UNLIMITED SYSTEMS, INC.
(WELLCONS)
although registered
with the Commission, has
NO SECONDARY LICENSE
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).
Notably, the schemes that is being offered by
MERARI
PAILAGAO
through
WELLCONS UNLIMITED SYSTEMS, INC.
is not within its allowed activities.
To emphasize, registration of a corporation merely grants it juridical personality and
must conduct business in accordance with the purpose for which it was established and
the law requires whenever such entity shall
solicit investment, it must have secured the
necessary secondary license
.
Accordingly, the Commission warns all unscrupulous individuals and/or entities
that strict penalties are imposed for violations of the Securities Regulation Code, the
Revised Cor
poration Code and such other laws, rules and regulations enforced by the
Commission.
Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such
of
WELLCONS UNLIMITED SYSTEMS, INC.
(WELLCONS)
in selling or convincing people
to i
nvest 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 cri
minal liability, or otherwise
be sanctioned or penalized accordingly as held by the Supreme Court in the case of
Securities and Exchange Commission vs. Oudine Santos
(G.R. No. 195542, 19 March 2014).
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
i
nvestment scheme being offered by
WELLCONS UNLIMITED SYSTEMS, INC.
(WELLCONS)
and exercise caution in dealing with any individuals or group of persons
soliciting investments or recruiting investors for and on behalf of
the said company.
Should you have any information regarding any investment solicitation by any
individuals or group of individuals on behalf of
MERARI
PAILAGAO
through
WELLCONS UNLIMITED SYSTEMS
, please send your report to the ENFORCEMENT AND
INVESTOR PROTECTION DEPA
RTMENT at
epd@sec.gov.ph
.
For the guidance of the public.