THE Securities and Exchange Commission (SEC) said it issued a second cease and desist order against AlphanetWorld Corp., which was found to have solicited investments from the public without the needed license.
AlphanetWorld, also operating under the name NWorld, received an initial cease and desist order from the SEC on Feb. 23.
The company moved to lift the February order, which was rejected for lack of merit by the commission on July 19, acording to an SEC statement released Tuesday.
The company had argued that “the purchase of its products and packages are plain sales transactions,” contrary to the SEC’s contention that the transactions constitute the sale of securities.
“The evidence presented by NWorld in support of its allegations and arguments therein simply failed to trounce the finding of this Commission that NWorld is engaged in the sale of securities in the form of investment contracts, and is in continuous violation of Section 8 of the (Securities Regulation Code,” the SEC said.
Section 8 bars the sale, offer or distribution of securities without a registration statement duly filed with and approved by the SEC.
The SEC has found that AlphanetWorld and its officials, including President Juluis Allan C. Nolasco, sold and offered investment packages through its website worth between P4,750 and P19,000 in exchange for products, promising a guaranteed monthly return of up to P127,000.
“Member-investors could also earn discounts of up to 30% for every purchase of NWorld products, referral bonuses, and an additional P25,000 when they (refer) 25 pairs of recruits,” the commission added.
“While AlphanetWorld is a duly registered corporation, it has never secured a secondary license from the commission as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the SRC,” the SEC said. — Justine Irish D. Tabile