THE Securities and Exchange Commission has ordered Crowd1 Asia Pacific Inc. to immediately stop soliciting and accepting investments from the public under a scheme disguised as a digital marketing business.
The cease and desist order covers the corporation's operators, partners, directors, officers, salespersons, agents, representatives, promoters, and all persons, conduit entities and subsidiaries claiming and acting for and on its behalf. Crowd1 likewise touts a pairing incentive payable in euros to encourage member-investors to recruit new members.
An investment contract is presumed to exist when a person seeks to use the money or property of other persons on the promise of profits. Also, a common enterprise is deemed created when two or more investors pool their resources even if the promoter receives nothing more than a broker's commission. The SEC Cebu Extension Office has also received several emails from clients inquiring whether Crowd1 is indeed authorized to solicit investments.