The SEC’s order dated July 5 comes after the commission on June 23 directed Wellcons to immediately cease engaging in the unlawful solicitation, offer, and sale of securities until it has filed the required registration statement and secured the necessary approval from the commission.
The cease-and-desist order was issued after the SEC’s Enforcement and Investor Protection Department found that Wellcons has been offering investment packages worth P2,500 to P13,890 with guaranteed returns of up to P9,000 to P32,000 per day. “[I]t is clear that Wellcons’ business model which promises high return of investments is not sustainable, and can only be carried out as long as new investors continue to come in,” the commission en banc said.
The SRC provides that securities should not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the SEC.