DNKC Corp.

December 5, 2023 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based on the information gathered by the Commission, a number of individuals or group of persons claiming to represent DNKC CORPORATION headed by Jonathan David Cacdac and Kweenee Cheng Cacdac are enticing the public to invest their money in said entity. ETHIDa As posted on its Facebook account, ( https://www.facebook.com/dnkcmarketing ), DNKC CORPORATION is enticing the public to invest in the entity's newest all-in-one business project which consists of a Rental business, Dental Spa, Grill Restaurant and a Beauty Salon with a guaranteed interest rate of 4.5% per month. An existing investor can also earn additional 5% for every successful referral. The investment offering by DNKC CORPORATION constitutes solicitation of investments from the public as the investors are enticed to invest money amounting from Php50,000.00 up to Php2,000,000.00 and in turn such investment will earn a guaranteed profit of at least 4.5% per month in violation of Sections 8, 26 and 28 of the Securities Regulation Code (SRC) and Section 11 in relation to Section 3 (f) of Republic Act No. 11765 otherwise known as the Financial Products and Services Consumer Protection Act (FCPA). TIADCc In this regard, the public is made aware that, an "investment contract," which is a kind of securities, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived primarily from the efforts of others which is prominent in the scheme of DNKC CORPORATION . As such, the SRC requires that securities must first be registered with this Commission before it can be offered and/or sold to the public and the concerned entity and/or its agents should have the appropriate registration and/or license to offer and/or sell such securities to the public. Records of the Commission show that while DNKC CORPORATION is registered with the Commission as a corporation, it is not authorized to solicit investments from the public as it did not secure prior registration and/or license to solicit investments from the Commission as prescribed under Sections 8 and 28 of the SRC. Further, the scheme employed by DNKC CORPORATION has the characteristics of a "Ponzi Scheme" where money from new investors are used in paying "fake profits" to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent participants if new investors become scarce. The offering and selling of securities in the form of investment contracts using the "Ponzi Scheme" which is fraudulent and unsustainable, 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. 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 of the Philippines and such other laws, rules and regulations enforced by the Commission. Those who act as salesmen, brokers, dealers or agents of DNKC CORPORATION , in convincing people to invest in the offered scheme, and those involved in solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and Section 11 of the FCPA both penalized separately with a maximum fine of Five Million pesos (Php5,000,000.00) or penalty of Twenty-one (21) years of imprisonment, or both pursuant to Section 73 of the SRC (G.R. No. 195542, 19 March 2014). In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by DNKC CORPORATION as well as to any other entities having the same or similar schemes and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of DNKC CORPORATION . cSEDTC Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes will be correspondingly assessed. The Commission urges anyone who has knowledge or information about any business transaction of DNKC CORPORATION and/or its agents to report such activity to the Enforcement and Investor Protection Department at [emailprotected] . For the guidance of the public. Makati City, December 5, 2023.