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SEC revokes registration of ScentkoWorld, Brendahl Cruz Holdings – Manila Bulletin


The Securities and Alternate Fee (SEC) has revoked the company registrations of ScentkoWorld Company and Brendahl Cruz Holdings, Inc. for illegally soliciting investments from the general public by means of a “buy and earn” program.

The SEC Enforcement and Investor Safety Division (EIPD) discovered that the businesses affiliated with Brendahl Cruz have been publicly providing and promoting securities with out the mandatory secondary license from the Fee.

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“In doing so, ScentkoWorld and Brendahl Cruz Holdings committed an ultra vires act under Section 44 of Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines,” mentioned the SEC.

The corporate’s actions additionally constituted severe misrepresentation as to what it might probably do, to the nice prejudice of or harm to most of the people, a floor for the revocation of an organization’s certificates of registration beneath Presidential Decree No. 902-A.

The Fee has warned the general public in opposition to investing in ScentkoWorld and Brendahl Cruz Holdings as early as July 31, 2019 by means of an advisory. A stop and desist order was then issued in opposition to the businesses on September 24, 2019.

ScentkoWorld and Brendahl Cruz Holdings have been attractive the general public to purchase fragrance and wonder merchandise in change for as much as 400 % in returns inside 30 days.

For example, an investor who buys a bundle value P5,000 can earn as much as P20,000 in a month’s time, regardless of whether or not they had been capable of promote the merchandise or not.

As an alternative, the promised return will rely upon how quickly the businesses can recruit new members. Members also can earn by recruiting extra folks into this system.

ScentkoWorld’s and Brendahl Cruz Holdings’ funding scheme entails securities, notably an funding contract, whereby an individual invests his cash in a standard enterprise and is led to anticipate earnings primarily from the efforts of others, based on the EIPD.

As a type of safety, funding contracts should be registered with the SEC earlier than they are often offered or provided inside the Philippines, pursuant to Part 8 of Republic Act No. 8799, or the Securities Regulation Code (SRC).

Information of the Fee reveal that, whereas ScentkoWorld and Brendahl Cruz Holdings are registered as companies, they haven’t registered any securities pursuant to the provisions of the SRC.

Additional, each firms haven’t employed licensed capital market professionals for the sale of securities.

The EIPD famous that the investment-taking actions of ScentkoWorld and Brendahl Cruz Holdings are “within the context of a Ponzi scheme, as there was nothing that would indicate that there is a lawful business activity from which to generate the supposed income to be distributed to their member-investors.” “The investment scheme of Mr. Cruz through ScentkoWorld Corporation and Brendahl Cruz Holdings, Inc. also operates to defraud investors as it deceives the investing public by making it appear that they have the authority to deal in securities. This also amounts to serious misrepresentation as to what they can do or are doing to the damage and prejudice of the investing public,” the SEC mentioned.

In its order, the SEC mentioned that, “Wherefore, for violation of Section 44 of the Revised Corporation Code of the Philippines (R.A. 11232) in relation to Sections 8.1 and 28.1 of the Securities Regulation Code and Section 6 (i)(2) of P.D. 902-A, the corporate registrations or Certificates of Incorporation/Registration of ScentkoWorld Corporation and Brendahl Cruz Holdings, Inc., are hereby REVOKED,” the order learn.


 

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