“Sigun sa panultihun, duha kuno ka klasi ang taw dinhi sa kalibutan.

Ang usa ang mangingilad, ikaduha

ang magpailad, pero dili kita uyon niana. Kinahanglan magbuhat tag ikatulo nga grupo, ang dili
magpailad”. This maxim was quoted by former basketball player, Mr. Ramon Fernandez- Commissioner
of Philippines Sports Commission. It caught my attention as the first time I heard this maxim, I want to
heard it twice but not given a chance for the livestreaming was ongoing. I am grateful through this
activity that I’m able to contemplate and to elaborate it further.

It was fitted for the goal of the program prepared by SEC during the Investor Protection Week- to
educate thus prevented to being scam, #magINVEStiga. That we must create people who are well-
educate about investment thus preventing further damages to people who is likely to be a target of
scam. As what SEC said in its last part of the livestream that anyone with money to invest is a target.
Implying that anybody can be the next victim of scam, maybe it is your friends, family, relatives,
someone you may know or it is possible that it is you. That we must defy what the norm of society tells
and create that certain point in the middle where the group of deceiver and the group of people who
are deceived didn’t fight for- to be not deceived. It can only achieve through proper education and
understanding in investment.

Atty. Oliver Leonardo

Investment contract- investment of money in a common enterprise with expectation of profits derived
from the efforts of others

Lihitimo ang kompanya, hindi sapat na rehistrado ang kompanya bilang korporasyon

Lisensyado ang ahente

When is an investment scheme a Scam?

- We can check if an offer involves an investment contract

Howey Test

 Kailangan mo bang maglabas ng pera?

 Mapupunta bas ng pera sa isang common enterprise, sa isang kompanya o sa isang negosyo?
 May inasahan ka bang kikitain o ipinangakong kita?
 Manggagaling baa ng kalakhan ng kitang ito sa effort o pagsisikap ng iba?

Oo, investmet contract

Rehistrado baa ng investment contract?

Ponzi Scheme & Pyramiding Sceme

Ponzi-

Pyramiding Sam o networking- pinapangakuanang investor ng malaking kita mul sa pagrerecruit

Pyramiding Sam vs. Multi-level Marketing- marketing strategy that involves legitimate products
Tanong na maaring gabay 8 point test by direct selling association of the philippines

1. Is there a product?
2. Are commissions paid on sale of products and not on registration/entry fees?
3. Is the intent to sell a product not a position?
4. Is there no direct correlation between the number of recruits and compensation?
5. If recruitment were to be stopped today, will the participants still make money?
6.  Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a compelling reason to buy?

Yes, direct selling

May mga produkto naman ibenebenta sa pyramiding, pero kung gusto mong kumita ng Malaki ang sagot
ay nasa recruitment. Sa katunayan hindi mo kailangan magbenta ng produkto para kumita. Magpapsok
ka lang ng bagong meyembro solve ka na. Sa madaling sabi disguise lang ang produkto. Minsan kailngan
mo paring makabenta parang makakuha ng kita na ipinangako. Pero ang presyo ay tila di tugma sa
produkto, may kape, dishwashing liquid at pabango na aabot ang presyo ng libo-libu.

Pyramiding schemes earn from registration/ entry fees of its members while multi-level marketing
companies earn from the sales of products.

Red Flags

-walang permit mula sa SEC

-Sounds too good to be true

-mali-maling advertisement o posts

-no face-to-face meetups

-Fake social media accounts and websites

- PM me for details/PM is the key

-no contract, prospectus, catalogue, legal documents

Anyone with money to invest is a target

Pyramiding Scheme is commonly interchange and misinterpreted by the mass as Multi-level marketing,
and vice versa. Pyramiding schemes earn from registration/ entry fees of its members while multi-level
marketing companies earn from the sales of products. As what Atty. Oliver Leonardo said and I quoted,
“May mga produkto naman ibenebenta sa pyramiding, pero kung gusto mong kumita ng malaki ang
sagot ay nasa recruitment. Sa katunayan hindi mo kailangan magbenta ng produkto para kumita.
Magpapsok ka lang ng bagong meyembro solve ka na. Sa madaling sabi disguise lang ang produkto.
Minsan kailangan mo paring makabenta parang makakuha ng kita na ipinangako.”

In a pyramiding shceme, one is need not to sell products but by just adding more recruits to the
company is more than enough to earn a big sum of money, the more you recruit the greater the money.
Atty. Oliver Leonardo also pin point that one may use the 8 points test by direct selling association of the
Philippines to know if the investment is a bluff or a boom. It is the method I will use in this activity to
identify if the investment is legit or not. It consists of the following questions:

1. Is there a product?
2. Are commissions paid on sale of products and not on registration/entry fees?
3. Is the intent to sell a product not a position?
4. Is there no direct correlation between the number of recruits and compensation?
5. If recruitment were to be stopped today, will the participants still make money?
6.  Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a compelling reason to buy?

Paysbook- Scam

Paysbook is a registered company but it has not secured the license to solicit investments from the
public, which requires a secondary license from the commission as per the Securities Regulation Code.
The securities being sold must also be registered with the SEC. The SEC issued on August 1, 2018 an
advisory against Paysbook to the public as it has no license to solicit such investments. The SEC issued a
statement and I quoted, “To date, the Department has not issued any order lifting the Aug. 1, 2018
Advisory on Paysbook E-commerce System Co. Ltd. finding no sufficient ground or justification to lift the
same. Thus, the general public is hereby informed that the Advisory remains valid and in effect.” There’s
no need to answer the 8 points test by direct selling association of the Philippines for the SEC already
said what we need to hear.

https://www.bworldonline.com/sec-renews-warning-against-paysbook/?
fbclid=IwAR10L8h5teqwahPtIgOpqsK1FPMMCBLRS2T9uSkLjk-_tfHgmPOmurC0lL8

TPC- Legit

1. Is there a product?
Ans: Yes, load.
2. Are commissions paid on sale of products and not on registration/entry fees?
 Ans: Yes, through
3. Is the intent to sell a product not a position?
Ans: Yes, regardless if you are a retailer or a dealer one can continue to sell load in its own pace.
4. Is there no direct correlation between the number of recruits and compensation?
Ans: Yes, the more load one person sells the greater the possibility to get higher compensation
5. If recruitment were to be stopped today, will the participants still make money?
Ans: Yes, through continuously selling loads
6.  Is there a reasonable product return policy?
Ans: Yes, there’s such a process called “Refund” which compensate the loader if the load
transaction is not receive by the costumer but already deducted the load balance of the loader
7. Do products have fair market value?
Ans: Yes, the same with the prices of load in a regular load retailer
8. Is there a compelling reason to buy?
Ans: Yes, since load can be considered as essential commodities in this time of new normal
situation, especially that students opt to online learning and businesses opt to online selling

First Vita Plus- Legit

1. Is there a product?
Ans: Yes, like juices (came from different flavors), coffee, etc.
2. Are commissions paid on sale of products and not on registration/entry fees?
Ans: Yes, First Vita Plus dealer’s income is commission based by helping out the company in
selling its product by means of direct First Vita Plus product endorsements to consumers and
providing the same big income opportunities to those consumers convinced into becoming a
dealer by presenting the marketing plan formulated by First Vita Plus.
3. Is the intent to sell a product not a position?
Ans: Yes, there’s product offered together with the marketing plan formulated by First Vita Plus
with an option of doing the business should the buyer intends to earn other than just being a
consumer.
4. Is there no direct correlation between the number of recruits and compensation?
Ans: Yes, First Vita Plus dealer’s income is commission based by helping out the company in
selling its product by means of direct FVP product endorsements to consumers and providing
the same big income opportunities to those consumers convinced into becoming a dealer by
presenting the marketing plan formulated by FVPMC.
5. If recruitment were to be stopped today, will the participants still make money?
Ans: Yes, by continuing selling the products that the First Vita Plus has products lines, giving
options to both dealers and consumers, thus there’s an unending product movement.
6.  Is there a reasonable product return policy?
Ans: Yes, First Vita Plus is simply doing the “you sell and I pay you” scheme in order to derive the
income pay-outs for the sellers and its own income with certain parameters so both can benefit
from each other keeping the company standing and far from collapse.
7. Do products have fair market value?
Ans: Yes, and First Vita Plus is duly registered and with authentic legal proofs of its legalities and
certifications in as much as business operation are concerned, SEC, DTI, BFAD, US-FDA, HALAL.
8. Is there a compelling reason to buy?

Ans: Yes, because First Vita Plus products is a natural juice drink from Moringa Oleifera,
Capsicum Frutescens, Corchorus Olitorius, Amaranthus Spinosus and Ipomea Batatas. All of
these five herbs are commonly found in tropical country like the Philippines. There have been
studies that proved the effectiveness of these herbs. It is natural and safe to consume hence the
main ingredient are also vegetables.