SEC issues CDO vs AlphanetWorld

The Securities and Exchange Commission (SEC) has ordered AlphanetWorld Corp.,  doing business under the name NWorld,  to stop soliciting investments from the public, saying the company has  no license to do so.

While AlphanetWorld is a duly registered corporation, the company has never secured a secondary license as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the Securities Regulation Code, which provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

In an order issued Feb. 23, the SEC en banc directed AlphanetWorld to immediately cease and desist from engaging in the unlawful or unauthorized solicitation, offer or sale of securities until the requisite registration statement has been duly filed with and approved by the SEC.

“NWorld is unlawfully engaged in the sale and/or offer of unregistered securities in the form of investment contract, because it has no license to carry out the same,” the SEC order said.

“The Commission holds that the act of NWorld 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,” SEC said

AlphanetWorld officers and representatives have also been  ordered to cease their internet presence in connection with their investment scheme.

The SEC likewise barred the company from transacting any business involving funds in its depository banks and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets for the benefit of affected investors.

Based on the SEC’s investigation, AlphanetWorld has been offering investment packages priced from P4,750 to P19,000 in exchange for NWorld products and a guaranteed monthly return of up to P127,000. Business transactions are supposedly made through the company’s official web page.