The Securities and Exchange Commission (SEC) has directed Wellcons Unlimited Systems Inc. to immediately stop its fraudulent investment-taking activities.
In an order dated June 23, the SEC issued a cease and desist order, stopping Wellcons, its president Merarie E. Pailagao as well as its other officers, salesmen and representatives from offering securities to the public in the form of investment contracts without prior registration and permit to sell.
Wellcons has likewise been prohibited from transacting any business involving funds in the company’s depository banks, and from transferring and disposing any related assets to ensure the protection of investors.
Under its scheme, Wellcons has been offering investment packages worth P2,500 to P13,890 under a so-called binary system with guaranteed returns of up to P9,000 to P32,000 per day.
Members who availed of investment packages under the binary system can further earn through Wellcon’s Pangkabuhayan Program, where they can supposedly double their money within six months based on investment packages worth P1,500 to P5,000.
In addition, Wellcons promised leadership bonuses and referral fees, among others.
SEC cited Sec. 8 of the Securities Regulation Code which provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.
While Wellcons is a duly registered corporation with the SEC, it has never secured a secondary license from the agency to operate as a broker/dealer of securities, nor is it a registered issuer of any securities.