SEC issues CDO vs Unity Premier

MANILA, Philippines — The Securities and Exchange Commission (SEC) has ordered a company offering wellness products to stop soliciting investments from the public.

In an order dated Aug. 16, the SEC en banc barred Unity Premier Business Group OPC from soliciting investments from the public through its supposed beauty product business.

SEC said the company should immediately cease and desist from engaging in the unlawful or unauthorized solicitation, offer, and/or sale of securities in the form of investment contracts.

“At the outset, the SEC notes that contrary to the primary purpose of Unity Premier of direct selling beauty products, there is no information or evidence showing what products are for sale, product description, prices per product as well as where the products are being sold,” the SEC en banc said.

“What is evident in Unity Premier’s advertisements is the focus on the sale and/or offer for sale of various investment packages with an insignificant inclusion of soap products,” it said.

The SEC’s order followed the investigation of the its Enforcement and Investor Protection Department (EIPD) which found out that Unity Premier has been marketing itself as a financial institution that can provide its members the opportunity to start their own e-commerce and affiliate platform and beauty product business.

Unity Premier offered investment packages worth P100 to P50,000 each, with promised returns ranging from P3.50 to P1,750 daily. Investors only needed to create an account through Unity Premier’s website and pay for the investment package of their choice, according to EIPD’s investigation.

Investors were also promised a 15 percent commission when they recruit more people into the system.

Unity Premier Business Group OPC also operates under the name Unity-Premier Beauty and Wellness Products Trading.

The SEC also ordered the company to cease their internet presence relating to their investment scheme and 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 of the investors.”

The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.

Section 8 of Republic Act 8799 or the Securities Regulation Code (SRC) 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.

The SEC said that while Unity Premier is a duly registered corporation, it has never secured a secondary license as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the SRC.