The Green Shop

September 14, 2021 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based on information gathered by the Commission, a number of individuals or group of persons claiming to represent THE GREEN SHOP headed by its CEO, Founder and President, SOLOMON SAJOR are enticing the public to invest their money in the said entity. As posted online, THE GREEN SHOP is enticing the public to invest with a minimum investment of Php1,000. Likewise, the following are the different ways to earn through THE GREEN SHOP : 1) Passive Income 2) Direct Referral Bonus and 3) Product Selling. The compensation plan provides for the different ways to earn passive income which entitles the investor to earn (1) 4% daily income; (2) 50% investment share income coming from those who invested to be divided equally to all investors; (3) 25% of the product sales for the day shall also be divided to all investors; and (4) 10% payback share income which shall come from an upline who earns from a downline . According to its founder and CEO, Mr. Sajor, the "ideology" of the compensation plan of the green shop came from the concept of " SHARING ." In addition, THE GREEN SHOP promises additional income in the recruitment of new investors with the promise of Php100 for every 1 direct referral, Php400 for every 2 direct referrals, Php500 for every 4 direct referrals, Php600 for 6 direct referrals and Php1,000 for every 10 direct referrals which qualifies you to power leader level. Considering that the above described schemes of THE GREEN SHOP involve the sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered with the Commission and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC. The records of the Commission show that THE GREEN SHOP is not registered with the Commission as a corporation nor as a partnership. Further, it is not authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the Securities Regulation Code. Further, THE GREEN SHOP is also not registered either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding. The public is reminded that any offer or promise of ridiculous rates of return with little or no risk similar to what THE GREEN SHOP is offering is an indication of a possible Ponzi Scheme where returns to early investors are likely to be paid out from the investment 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 a "Ponzi Scheme" is fraudulent and unsustainable and is NOT a registrable security. The Commission shall NOT ISSUE a License to Sell Securities to the Public to persons or entities that are engaged in this kind of businesses or schemes. May this also serve as a 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 THE GREEN SHOP especially during this pandemic. Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties shall be imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations enforced by it. Hence, those who act as salesmen, brokers, dealers or agents of unauthorized entities in selling or convincing people to invest in their investment scheme 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 THE GREEN SHOP , please send your report to the EIPD at [emailprotected] . For the guidance of the public. Pasay City, September 14, 2021.