SEC revokes registration of IWATCH.PH

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)