iWATCH.PH Corp. (iWATCH.PH)

April 20, 2021 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY The Commission has received information that individuals or group of persons representing iWATCH.PH CORPORATION (iWATCH.PH) headed by Jerome Operio, Reiner Cadiz and Joseph Regalario are allegedly enticing the public to invest in the said entity online or through the internet. As posted in its website, iWATCH.PH is an "online business that gives Filipinos a lifetime reason to earn in 20 different ways and with multiple features, giving them no excuses to have nothing coming in to have a greater life even further." Based on the information gathered, a prospective investor should pay an amount of Php2,188.00 to become a member and can enjoy different ways to earn as an iWatcher. itokens are used for watching videos 1 itoken is equivalent to Php10.00 that will go to the investor's Ads Wallet. icredits are used for sharing videos 1 icredit is equivalent to Php1.00 that will go to the investor's Available Balance. In iWATCH.PH there are three types of wallet on the dashboard Ads Wallet, Available Balance and Pending. o 2 icredits every day a member/iWatcher will receive 2 icredits every day aside from the initial 50 icredits. o 625 itokens a member/iWatcher will receive 25 itokens per day for 25 days. o Direct Referral Bonus a member/iWatcher will receive Php200.00 pesos from the company and Php500.00 will be deducted from his Ads Wallet which will be transferred to his available balance. The Ads Wallet of a member/iWatcher will not be converted into cash if he/she was not able to recruit. o Leadership Bonus a member/iWatcher will receive 8 itokens for every recruit convertible to Php5.00 per token. o Salesmatch Bonus a member/iWatcher will receive Php200.00 for every pair of a member's binary structure and a corresponding voucher. o Maintenance Bonus a member/iWatcher will pay Php1,500.00 to get another 100 itokens once a member already utilized and converted all the remaining balance in his/her Ads Wallet to Available Balance. o Repeat Direct Referral Bonus a member/iWatcher will receive Php300.00 for every Maintenance Bonus paid by a member's direct referral. o Unilevel Bonus a member/iWatcher will receive Php30.00 for every Maintenance Bonus paid by a member's indirect referral but under his/her own structure. The public is hereby advised to exercise due care and caution in investing their money in this type of scheme being offered by iWATCH.PH and/or its agents. In the instant case, the scheme of iWATCH.PH has the characteristics of a Pyramid scheme. The Pyramiding scheme involves securities because for payment of a sum of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits. The scheme that requires recruitment in a two-pronged structure takes the form of a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Here, the recruitment fees collected from new recruits are used to pay the recruiting commissions to earlier recruits. As the scheme of iWATCH.PH involves the sale of securities to the public, the SRC requires that the issuing entity must be a registered corporation with the SEC, the said securities offered are duly registered and that the appropriate license and/or permit to offer and sell securities to the public are issued to the corporation and/or its agents, pursuant to the provisions of Sections 8 and 28 of the SRC. Records of the Commission show that while iWATCH.PH 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. Those who act as salesmen, brokers, dealers or agents of iWATCH.PH in selling or convincing people to invest in their investment schemes including solicitation or recruitment through the internet may likewise be prosecuted, held criminally liable and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or a maximum penalty of Twenty-One (21) years of imprisonment or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014) . 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 public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of iWATCH.PH and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it. The Commission urges anyone who has knowledge or information about any business transaction of iWATCH.PH and/or its agents to report such activity to the Enforcement and Investor Protection Department at [emailprotected] . For the guidance of the public. Pasay City, April 20, 2021.