Kaizen Unlimited Philippines

January 11, 2022 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 KAIZEN UNLIMITED PHILIPPINES (" KAIZEN ") whose Grand Upline is a certain KEN NICHOLAS , are enticing the public to invest their money in said entity. As posted online, KAIZEN is offering investments, allegedly to be traded in cryptocurrencies, where investors need only to invest an amount of at least 10 US$ or equivalent to Php500.00 and shall earn daily profit equivalent to 3.5% daily for a total of 50 days or for a total earnings of 175% in just a matter of 50 days . As the above described scheme of KAIZEN UNLIMITED PHILIPPINES through KEN NICHOLAS involves the offering and sale of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned company and/or any of its agents must have the appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC. KAIZEN UNLIMITED PHILIPPINES is not registered with the Commission either as a corporation or as a partnership. Having no primary registration and as the schemes it employs show indication of a " Ponzi Scheme " where monies 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 members in case of scarcity of new investors, with more reason that it cannot be granted a secondary license that would allow it to solicit investment from the public. Please be reminded 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 securities. The Commission will NOT ISSUE a Permit to Offer and Sell Securities to the Public to persons or entities that are engaged in this business or scheme . KAIZEN UNLIMITED PHILIPPINES is NOT REGISTERED as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas (BSP) NOR DOES IT HAVE A CORRESPONDING CERTIFICATE OF AUTHORITY as a Money Service Business (MSB) required under the Guidelines for Virtual Asset Service Providers (BSP Circular No. 1108, Series of 2021). Likewise, its name DOES NOT APPEAR among those listed as registered MSBs as of January 2021 with the Anti-Money Laundering Council under the Anti-Money Laundering Act, as amended . 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 . Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such of KAIZEN UNLIMITED PHILIPPINES and KEN NICHOLAS in selling or convincing people to invest in the investment scheme being offered by said entity including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized 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. Also, 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 Securities and Exchange Commission vs. Oudine Santos (G.R. No. 195542, 19 March 2014) . Further, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed. In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by KAIZEN UNLIMITED PHILIPPINES through KEN NICHOLAS and exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of KAIZEN UNLIMITED PHILIPPINES 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 for and on behalf of it. Should you have any information regarding any investment solicitation by any individuals or group of individuals on behalf of KAIZEN UNLIMITED PHILIPPINES , please send your report to the ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT at [emailprotected] . For the guidance of the public. Pasay City, January 11, 2022.