SCET Colleens Corp.

September 2, 2021 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY In response to numerous reports and inquiries received by the Commission on SCET COLLEENS CORPORATION (SCET) by SHARA JANE CASAO CHAVEZ, KAY ANNE CUIZON LEYSON, EDITH FRANCISSE VILLEGAS TABLANTE, EARN STA. RITA SAGUINDEL , and ARTEMIO TARONA PONCE, JR. , the Commission wishes to inform the public that SCET COLLEENS CORPORATION is NOT AUTHORIZED to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined of the Securities Regulation Code (SRC) because it DOES NOT HAVE A SECONDARY LICENSE from the Commission for that purpose contrary to its supposed claim . To wit: Based on what we have gathered, SCET COLLEENS CORPORATION is offering a number of investment packages and promos ranging from Three Thousand Eight Hundred Pesos (Php3,800.00) to One Million Eighty Thousand Pesos (Php1,080,000.00) promising guaranteed lucrative passive returns of Five to Eight Percent Return of Investment (5-8% ROI) per month and other bonuses with little or no risk. These include the SUB-RESELLER DISTRIBUTOR, RESELLER DISTRIBUTOR, CITY DISTRIBUTOR, PROVINCIAL DISTRIBUTOR, REGIONAL DISTRIBUTOR, STARTER, JUMPSTART, DELUXE, PRO, ELITE , and DIAMOND compensation plans/packages. Hence, since the scheme of SCET COLLEENS CORPORATION involves the offering and sale of securities, in the form of investment contracts, to the public where investors are deemed investing in its enterprise and are led to expect profits therefrom even without doing anything, the SRC requires that such securities must be duly registered with the Commission and that SCET COLLEENS CORPORATION must also secure the necessary registration and/or license to offer and/or sell the same as well. However, as mentioned earlier, the SCET COLLEENS CORPORATION FAILED TO SECURE A SECONDARY LICENSE from the Commission. It must be emphasized that its primary registration with the Commission does not carry with it the license to solicit investments from the public. The issuance of a Certificate of Incorporation only grants an entity a juridical personality but it does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC . To put it simply, prior registration with the Commission does not automatically legitimize all activities of an entity specially if securing further licenses and/or permits are mandatory for their operations. The public is reminded that any offer or promise of ridiculous rates of return with little or no risk similar to what SCET COLLEENS CORPORATION is offering is an indication of a possible Ponzi Scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the companies' profits similar to those already flagged by the Commission as scams. Entities engaged in such operation tend to close or to shut down operations once they cannot gather enough investments to fund their schemes due to the scarcity of new investors. The public is again informed that the offering and sale of such securities in the form of investment contracts using the "Ponzi Scheme" is fraudulent and unsustainable and is NOT a registrable security . The Commission will NOT ISSUE a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme . May this serve as a fair warning to the public to always exercise extreme caution before making or placing their monies on entities that offers "too good to be true" investment packages similar to SCET COLLEENS CORPORATION especially during this pandemic. Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations enforced by the it . Those who act as salesmen, brokers, dealers or agents of unauthorized entities in selling or convincing people to invest in their investment scheme offered including solicitations and recruitment through the internet , may likewise be criminally prosecuted and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC. Similarly, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014). The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be assessed correspondingly. Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing SCET COLLEENS CORPORATION , please send your report to the EIPD at [emailprotected]. For the guidance of the public. Pasay City, September 2, 2021.