THE Securities and Exchange Commission (SEC) has cautioned the public against dealing with people who entice them in investing on Unitynet Corp., which is selling its scheme through social media and other online platforms.
The regulator said Unitynet may be registered with the SEC as a corporation, but its registration does not authorize it to offer, solicit, sell or distribute any investment or securities.
“Such activities require a secondary license from the commission, and the securities or investment product should, likewise, be registered with [the] SEC before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code [SRC],” the regulator said in its advisory.
Citing results of its investigation, the SEC alleges that Unitynet, headed by Eduard Gary Salazar Reformina, sells the so-called ascending-profit system, an online automated system, to the public.
Under its system, the recruited members are allegedly trained on how to recruit or sponsor more downlines into his network marketing business, on how to sell products online effectively and on how to promote his traditional business.
The kit includes training materials and one-on-one coaching, among other systems for the said online business that Unitynet claimed to cost around P70,000.
Instead, Unitynet is selling its system for P2,990 and claims a member will earn P1,000 for every person he refers into the system.
“Likewise, the prospective investor is told that he can earn as much as P11,000, but he must join Unitynet right away because only limited slots are available,” the SEC said.
A member may recruit by posting on his social-media account or web site, an inspirational video that has an enticing clickable banner, which, when clicked, shall redirect the prospective member to a referral link leading to the video presentation of Unitynet and finally ending up on their sign-up page that is modified to link to the referror’s account.
The referror’s unique code is indicated in the link and shall serve automatically as the new investor’s sponsor that is entitled to the commission or referral income.
The SEC said those who act as salesmen, brokers, dealers or agents of Unitynet in selling or convincing people to invest in the investment scheme being offered by company, including solicitations or recruitment through the Internet, may also be prosecuted and held criminally liable under the SRC.
“Accordingly, those who invite or recruit other people to join or invest in this venture or offer contracts or securities to the public may be held liable or accordingly sanctioned or penalized,” the SEC said.