THE Court of Appeals (CA) affirmed the cease-and-desist order imposed by the Securities and Exchange Commission (SEC) against AlphanetWorld Corp. (NWorld) for offering investments without the necessary registration and licenses.
The CA 8th Division promulgated an 11-page decision on Dec. 27 that said the SEC provided NWorld with due process in issuing the order and that the company was engaged in soliciting investments from the public without the needed requirements, the corporate regulator said in an e-mailed statement on Tuesday.
The commission issued the cease-and-desist order against NWorld on Feb. 23, 2022. It also denied NWorld’s motion to lift the order on July 19, 2022, citing a lack of merit.
NWorld was found to be engaged in the selling of investment packages ranging from P4,750 to P19,000, with a guaranteed return of up to P127,000 per month following an investigation by the SEC’s Enforcement and Investor Protection Department.
Investors were allegedly entitled to bonuses such as discounted rates for every purchase of investment packages, referral bonuses, sales match bonuses, and potential earnings of P25,000 under NWorld’s “XX Cash” program whenever they meet the required pairs of recruits.
The sale or distribution of securities without the necessary documents is prohibited under Republic Act No. 8799 or the Securities Regulation Code.
In July 2022, the SEC canceled the corporate registration of NWorld for fraud in the procurement of its certificate of incorporation, citing its submission of an invalid Tax Identification Number in its articles of incorporation. — Revin Mikhael D. Ochave
