In an order dated December 13, the Commission's Enforcement and Investor Protection Department found IWATCH.PH CORPORATION of multiple violations.
IWATCH.PH’s scheme bears the hallmarks of an unlawful selling of unregistered securities-cum-pyramiding scheme based on the following factors:
· No genuine product or service
· No demonstrated revenue from retail sales
· Highlights easy money or passive income
· Buy-in required
· Emphasizes recruiting
Considering that nowhere is it stated in the primary purpose of IWATCH.PH that it is authorized to engage in investment-solicitation activities through the offering or selling for public sale securities in the form of investment contracts, the activities of IWATCH.PH of offering or selling unregistered securities to the public and without the corresponding registration or license as a securities broker is considered an ultra vires act under Section 44 of the Revised Corporation Code of the Philippines (RCCP),or an act beyond the corporate powers conferred to it by the State and therefore constitute serious misrepresentation as to what the corporation can do to the great prejudice or damage to the general public which is a ground for the revocation of a corporation’s primary franchise or certificate of registration/ incorporation under PD 902-A.
Finally, a verification with the Bureau of Internal Revenue (BIR) on the authenticity of the Taxpayer Identification Numbers (TINs) of the incorporators of IWATCH.PH CORPORATION, as indicated in its Articles of Incorporation reveals that one (1) of the incorporators presented an invalid TIN.
The employment of invalid and false TINs in order to acquire registration with the Commission is tantamount to fraud in the procurement of the Certificate of Incorporation which is a valid ground for the revocation of the said Certificate pursuant to Section 6(i)(1) of PD 902-A.
WHEREFORE, for violation of Section 44 of the Revised Corporation Code of the Philippines (R.A. No. 11232)] in relation to Sections 8.1 and 28.1 of the Securities Regulation Code and Section 6 (i) (1) and (2) of P.D. 902-A, Section 5.1 (m) of the SRC and Section 179 (j) of the RCCP, the corporate registration or Certificate of Incorporation/Registration of IWATCH.PHCORPORATION, is hereby REVOKED.
SEC has issued an advisory against IWATCH.PH CORPORATION last April 20, 2021. (PR)
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