THE Securities and Exchange Commission (SEC) has ordered Wellcons Unlimited Systems, Inc. (Wellcons), its president, Merarie E. Pailagao, its officer, operators, administrators, promoters, representatives, salesmen, agents, investment team planners, mentors, enablers, influencers, assigns, conduit entities, subsidiaries, and any and all persons claiming and/or acting for and in their behalf, to stop soliciting investments from the public.
In an order issued on June 23, the Commission directed Wellcons to cease and desist from selling/and or offering securities in the form of investment contracts and to cease its internet presence until the requisite permits are duly issued.
They are likewise prohibited from transacting any business involving the funds in its depository banks and/or in any non-bank financial institution, and from transferring, disposing, or conveying in any manner, any and all assets, properties, real or personal, including bank deposits, if any, of which the named persons herein have interest, claim or participation, whether directly or indirectly, under their custody to ensure the preservation of the assets of the investors.
While Wellcons’s principal office address is located in Valencia City, Bukidnon, the SEC Davao Extension Office has verified its operations within SEC-Davao’s Area of Responsibility (Davao Region, Soccsksargen and Maguindanao Province).
Based on the pieces of evidence that were gathered, the Commission’s Enforcement and Investor Protection Department was able to confirm that Wellcons is offering/selling unregistered securities either under a Binary System and the Pangkabuhayan Program, the former being a gateway to a member’s entitlement and enjoyment of the profits/benefits given in the latter.
The Pangkabuhayan Program’s scheme is also commonly known as the “double-your-money scheme”, where member-investors are promised a return of at least 50% of their investment within a period of six (6) months.
Wellcons’ business model, which promised high return of investments, is not sustainable, and can only be carried out as long as new investors continue to come. This is a fraudulent scheme which will likely cause grave or irreparable injury or prejudice to the investing public. Thus, the Commission holds that the act of Wellcons in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public.
It can be recalled that the Commission issued and posted Advisory in its website to inform and advise the public to exercise caution in dealing with any person who is soliciting investments or selling unauthorized securities for and on behalf of Wellcons.
Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing Wellcons, please send your report to the EIPD at epd@sec.gov.ph.
