CAGAYAN DE ORO CITY, Philippines – The fate of a networking company here now hangs in the balance as the Securities and Exchange Commission (SEC) commissioners en banc will deliberate if it would be allowed to resume its operations.
Jocals688 Beauty and Wellness Products Trading Inc. was at the center of controversy after SEC issued a cease and desist order for the company’s alleged “sale and/or offering of security of securities in the form of investment contracts without prior registration and the corresponding permit.”
The order, dated June 3, was served at Barangay Macasandig on June 4.
According to lawyer Renato Egypto, SEC director for Northern Mindanao and Caraga regions, the Certificate of Incorporation (CS201965099) issued to Jocals688 Oct. 9, 2019 stated that it “shall not solicit, accept or take investments/ placements from the public neither shall it issue investment contracts.”
“The Enforcement and Investor Protection Department (EIPD), however, found that JOCALS688 enticed members to deposit a minimum of P10,000 to earn P13,000 after a month. Alternatively, one could become a member by purchasing a package of products for P3,800,” he shared.
Members, he said, could earn by selling the products. “However, they could supposedly receive bigger returns by simply recruiting more people into the scheme.”
In the course of its investigation, SEC also found out that two of the company’s incorporators allegedly have invalid Tax Identification Numbers.
“That’s exactly a ground for revocation, for fraud in the procurement of the certificate of incorporation,” Egypto said.
Jocals688 already submitted its motion for reconsideration to the central office on Tuesday, June 9). Now, it’s now up to the commissioners to decide on the case, Egypto added.
Meanwhile, in a previous interview, Joshua Calderon, Jocals688 chief executive officer, maintained that his business is legal and that the company is not engaged in investment taking activities.
“We are not into investment. What you earn is incentive when you buy products from us,” he explained.
He said they were unfazed with the accusation hurled against the company and noted they have been involved in the humanitarian efforts primarily in the donation of food packs and other assistance to the frontliners during the COVID-19 pandemic.
As of this posting, Calderon has yet to issue a statement regarding the cease and desist order. But the motion for reconsideration, Egypto said, would give the company the chance to explain its side.
Jocals688’s principal office is located at Barangay Madasigon, Molave, Zamboanga del Sur. It sells Jocals Gluta Glow Powdered Drink Mix, Jocals Green Coffee, and Jocals Vitamin C. (davaotoday.com)