• SEC warns public about Forward Direct Selling Corp.

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    State-owned corporate regulator Securities and Exchange Commission (SEC) has issued a warning to the public about fraudulent investment schemes the SEC says are being undertaken by firm Forward Direct Selling Corp.

    In an advisory, SEC said Forward Direct Selling Corp. is “inviting people to invest under the same scheme used by One Lightning Corp.,” which earlier was issued a cease-and-desist order from the commission.

    “It has come to the attention of the commission that Forward Direct Selling Corp. is being operated by the same people behind One Lightning Corp,” SEC said, adding, “Using a different technology to make it appear that it is engaged in multilevel marketing, Forward Direct Selling Corp. is practically operating the same marketing program as One Lightning.”

    SEC said that despite the change in corporate name, Forward Direct Selling’s marketing program is also attracting people to invest with the lure of profits derived from recruiting new investors into the program —a practice long recognized as a pyramid scheme.

    Profits under this scheme come from the “amounts invested by downline investors, or so called dealers or distributors, who are themselves enticed by lure of profits” and will then recruit members under them, perpetuating a cycle that benefits only the investor or operator on top of the pyramid.

    SEC is warning the public that people who opt to invest or engage in a venture with Forward Direct Selling “may be held criminally liable or accordingly sanctioned or penalized” based on criminal and corporate laws.

    “In view thereof, the public is advised to stop investing in this kind of investment activity and to take necessary precautious in dealing with the above named entity or its representatives,” the corporate regulator said.

    Besides Forward Direct Selling, SEC has been active in tracking down fraudulent investment and trading activities, investigating unregistered firms such as One Lightning Corp., One Dream Global Marketing Inc., and Global Intergold (formerly Emgoldex Philippines), among others.

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    2 Comments

    1. May mga kumpanya lang na naka isip na makatulong sa ibang tao lalo na sa mahihirap. Para sa akin mas magandang sumali sa networking kaysa tumaya ako sa lotto. Sana ang gawin SEC, pag nag iissue sila ng business permit to operate sana ang gawin nila at that point, kinikilatis na nila from the start yung business na gustong ipa-register. For example, gusto ko magtatag ng networking company gusto kong mai-discuss na itong mabuti sa SEC sa start palang para malaman nila ang business plan. Maganda ‘to para magkakaron sila ng idea kung sa tingin nila mali o tama o scam ang business. Ang problema mag iissue sila ng warning o kaya cease & desist order pero dapat pag harapin yung may ari ng kumpany at yung complainant para fair. May alam akong legit na MLM maraming natulungan may nag complain lang na isa o dalawa may warning agad! Ang masaklap hindi man lang nagpakita yung nagre reklamo yun para may ari ng kumpanya ang nakikisuyo. Nakipag settle na sa SEC, humarap pa sa media pero binalewala lang. Yan ba ang tumatakas sa responsibilidad? Pero yung mga natulungan hindi man lang binigyan ng chance maka usap. Yan yung medyo malabo.

    2. Global Intergold or Global IGold has already pursued legal registration in the Philippines. You may check at iregister.sec.gov.ph. So I am just wondering why this old news is still resurrected from time to time. Is there an agenda to push negative publicity against the company? I hope you will be fair in your reports and give the company a fair chance.