THE Securities and Exchange Commission (SEC) ordered Crowd1 Asia Pacific, Inc. (Crowd1) to stop its unauthorized soliciting and accepting investments from the public.
In a statement, SEC said the company, although registered, does not have the secondary license to accept investments.
“Under the Securities Regulations Code, a registered company can only solicit securities and other similar investment instruments if they are able to secure a secondary license. A certificate of incorporation (primary registration) does not constitute a license to solicit or accept investments from the public,” the statement read.
It added that the Commission’s Enforcement and Investor Protection Department (EIPD) found that two of the incorporators of Crowd1 have invalid Taxpayers Identification Number (TIN) as confirmed by the Bureau of Internal Revenue (BIR).
The cease and desist order, according to the SEC, also covered all of its representatives.
“The Commission will institute the appropriate administrative and criminal action against any persons or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or the like for and in behalf of the subject partnership,” the order said.
In the order, Crowd1 is said to be asking people to invest in educational packages ranging from P6,000 to P150,000 with a limited offer of P240,000. It promised to return about P400,000 and depending on the corresponding points earned with each type of investment.
The company is said to be encouraging people to download its mobile application.
SEC Davao Extension Office (SEC-Davao) also reported that Crowd1 has been conducting investment activities in the city through digital platforms.
“The investigation report submitted by SEC-Davao affirmed the finding of EIPD that Crowd1 carries out its investment-taking activities through different internet channels such as Facebook, YouTube and Slideshare sans the requisite secondary license from the Commission,” the statement read.
The Commission further warned the public on the dangers of investing in a company that does not have a legal personality
“Because of the pandemic, the Commission is anticipating financially difficult times ahead. The SEC-Davao Extension Office is reminding the public to protect your hard-earned money so you may have some for future use,” it said.