SEC issues warning against RU Affiliates | SunStar

SEC issues warning against RU Affiliates

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SEC issues warning against RU Affiliates

Thursday, November 09, 2017

THE Securities and Exchange Commission wants the public to “exercise caution” when dealing with RU Affiliates.

In an advisory issued Tuesday, SEC warned the public against RU Affiliates, an organization not registered with the commission and is unauthorized to solicit investments from the public.

Based on the information communicated to the commission, RU Affiliates sells an online training course “IHX Factor” worth P1,599. The course contains 11 videos on how one can recruit or sponsor more downlines into his/her network marketing business, how one can sell products online effectively, and how one can promote his/her traditional business.

For those who purchased the training course, its “top secret system” will be available for free. The said system will enable its users to promote the business online and execute the compensation plan.

To earn, SEC said RU Affiliates members need to recruit new members. To do so, they may post referral links in their social media accounts. This will direct the potential recruit to an online form to create a new account. The new member must add funds to his/her account to purchase the IHX Factor online training course.

Earnings are reportedly received through direct commission, where a member is promised earnings of P1,000 for every person referred into the system. There is also a shared commission where for every three referrals, the member will earn P200. A goodwill commission is also reportedly paid out when for every three referrals, the member’s upline will earn P400, and his/her downline who is next in line for the commission will also earn P400.

SEC warned sales personnel, brokers, dealers, or agents of RU Affiliates that they may be criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum penalty of P5 million and 21 years imprisonment.

This year, SEC has issued 16 advisories against alleged scam activities. Aside from RU Affiliates, the corporate regulator also warned the public against Pluggle Inc., Lets Philippines, Sureads/Sureadz, J.I. Joe Marketing, 7Seals Trading and Fazcoin Marketing Services, JJ Poor to Rich, BrainMax Holdings and Trading, Bullion Buyer Ltd, Golden Heart Helping Hand Foundation, Kabus Padatoon (KAPPA), Programme Blessing for the Filipino People Association Inc., RazzleDazzle Enterprise, Monspace Philippines, MGC Forex Philipppines, and XTrade.com.

Published in the SunStar Cebu newspaper on November 10, 2017.

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