CAGAYAN DE ORO CITY – A businessman here denied on Saturday (April 18) the accusation of the Securities and Exchange Commission (SEC) that he is engaging in an illegal financial scheme
In a radio interview, Joshua Calderon, chief executive officer of Jocals688 Beauty and Wellness Products Trading Inc., said his business is legally registered with the SEC.
Jocals688, he said, is a networking company selling Jocals Gluta Glow Powdered Drink Mix, Jocals Green Coffee, and Jocals Vitamin C.
According to SEC, Jocals688 was registered with the commission on October 9, 2019, under company registration no. CS201965099.
In its media advisory, however, SEC said the company’s products are not registered with the Food and Drugs Administration (FDA) and it has no license to operate (LTO) from FDA-Center for Food Regulation and Research.
While Jocals688 is a duly SEC-registered entity, SEC said the firm is not allowed to engage in investment-taking activity by offering an investment of up PHP100,000 with a minimum investment of PHP10,000.
“An investor is assured that even without any effort on his/her part, a 30 percent monthly return is guaranteed,” the agency said.
SEC added a person could become a Jocals688 member by paying PHP3,980 that would entitle him or her a monthly return of 30 percent.
The membership fee, SEC said, is inclusive of a bottle of juice, a box of coffee and a bottle of food supplement.
The scheme employed by Jocals688 offers five different ways to earn money, which include direct selling, direct referral bonus, pairing bonus, "unilevel" bonus, and through buy and earn.
“With the referral link of Jocals6888, one can recruit a member and earn [PHP500] for every successful registered account,” SEC said.
In a separate radio interview, lawyer Renato Egypto, SEC-Cagayan de Oro chief, said there is no legal impediment if the company is into the business of selling products so long as these have legal permits.
In response, Calderon said that he has secured an LTO from FDA although, he admitted, the certificate of product registration of his products is still “on-process.”
He also clarified that his company is not engaged in a get-rich-quick financial investment scheme used by some groups to entice potential investors.
“We are not into investment. What you earn is incentive when you buy products from us,” he said.
SEC has reminded that “aside from the strict penalties imposed by the commission for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces, the Bayanihan to Heal as One Act (Republic Act No. 11469) also punishes those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.”
“Those who act as salesmen, brokers, dealers or agents of the said entity in selling or convincing people to invest in the investment scheme it is being offered including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (PHP5,000,000) or imprisonment of 21 years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014),” it said. (PNA)
