Gainz Philippines

December 5, 2023 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY This is to inform the public that GAINZ PHILIPPINES is NOT AUTHORIZED TO SOLICIT INVESTMENTS FROM THE PUBLIC. AIDSTE According to one LEAH MELEVO , the supposed CEO of GAINZ PHILIPPINES , they are offering the Filipino investing public an opportunity to earn passive income through her expertise in trading cryptocurrencies, as seen below: GAINZ PHILIPPINES through its Facebook group and Facebook page, and the Facebook verified personal social media account of its CEO LEAH MELEVO , is offering multiple investment plans under its MAX PLAN where investors will gain 90% of their initial investment in just 20 days. As shown below: SDAaTC In addition, GAINZ PHILIPPINES also offers a 10% referral bonus to investors who will successfully entice other persons to invest their money in GAINZ PHILIPPINES . As shown below: On top of the referral bonus, the said investor will also earn additional 1% profit from the referrals of the persons they have invited to invest money into GAINZ PHILIPPINES , as shown below: AaCTcI The aforementioned investment scheme of GAINZ PHILIPPINES clearly involves offering and sale of securities in the form of an "investment contract" as defined under Section 3.1 of the Securities Regulation Code. Considering that the scheme of GAINZ PHILIPPINES , involves the offer and sale of securities, the law requires it to have a SECONDARY LICENSE from the Commission pursuant to Sections 8 and 12 of the SRC. However, GAINZ PHILIPPINES is NOT REGISTERED with the Commission as a corporation or partnership. It is noteworthy that prior registration is required before an entity can be issued a secondary license to offer and/or solicit investments from the public . GAINZ PHILIPPINES , being an unregistered entity, is NOT AUTHORIZED to solicit investments from the public because prior registration with the commission is required before securing a secondary license. acEHCD The scheme offered by GAINZ PHILIPPINES to the public is 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. GAINZ PHILIPPINES has no tangible source of income as it has no legitimate service or products to offer and the investment's fate is entirely reliant on the supposed expertise and trading skills of the CEO LEAH MELEVO in a highly-volatile asset class of cyptocurrencies. A business employing the "Ponzi Scheme" is bound to fail because it has no clear way of making profits and is only relying on future investors to pay earlier investors. When the business cannot find new investors, the asset bubble will eventually burst and the said business will fail to pay the supposed "profits" to earlier investors. Further, 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. Finally, the Financial Products and Services Consumer Protection Act (FCPA) also prohibits investment fraud which is defined under the law as any form of deceptive solicitation of investments from the public which includes Ponzi Schemes and such other schemes involving the promise or offer of profits or returns sourced from the investments or contribution made by the investors themselves and the offering or selling of investment schemes to the public without a license or permit from the SEC. In view thereof, the public is hereby advised NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by GAINZ PHILIPPINES and LEAH MELEVO 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 GAINZ PHILIPPINES and LEAH MELEVO . Those who act as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers and enablers of GAINZ PHILIPPINES and LEAH MELEVO in selling or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 11 of the FCPA and Section 28 of the SRC where both violations are separately penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014) . EcTCAD Furthermore, 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. Should you have any information regarding any investment solicitation by any individual or group of individuals on behalf of GAINZ PHILIPPINES and LEAH MELEVO please send your report through email at [emailprotected] . For the information and guidance of the public. Makati City, December 5, 2023.