Great4 International Mktng. Corp. Doing Business under the Name and Style of Home of Organic Wellness (HOW)

February 15, 2022 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY The Commission has received information pertaining to the solicitation activities of GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNESS (HOW) (hereinafter referred to as HOW ) . Based on the reports received and information gathered by the Commission, HOW has been enticing the public to invest in the company through the following membership packages: Every membership package has a corresponding position/designation given to the members as shown in the list above, such as, Marketing Director, Marketing Coordinator, Marketing Specialist, Marketing Officer and Brand Ambassador. Further, upon becoming a member, an investor may opt to get 1 or 3 membership accounts. One (1) account of the Gold package valued at P7,000.00, entitled an investor to receive one of each of HOW's flagship products namely the "Pinemax" and "Bullseye," with a potential maximum income of P36,000.00 per day, P252,000.00 per week and P1,080,000.00 per month . For three (3) accounts of the Gold package valued at P21,000.00, a prospective investor-member will get two (2) of each of HOW's products, namely, Pinemax, Bullseye, Shape and White and Beaute C, with a potential maximum income of P108,000.00/day, P756,000.00/week and P3,240,000.00/month . There are eight (8) ways to earn under the Gold package , viz. : 1. Direct Selling member is entitled to 30%-35% lifetime discount on all HOW products; 2. Direct referral 10% in every entry/invite in the organization; 3. Sales Match Bonus the upline will earn P4,000.00 in every pair, 3 pairs in 1 cycle. Upon completing the 1 cycle, the upline needs to purchase the Reactivation Package worth P4,000.00 to earn for the succeeding pairings; 4. Leadership Royalty Bonus Up to 10th level 3 cycles per day, 3 pairs per day with potential income of P1,800,000.00. The upline will like earn P20.00 for every purchase of Reactivation Package of its downline up to 20th level; 5. Products Reward Points earn ranging from 1,750 PRP to 2,800 PRP for every purchase of HOW products at suggested retail price (SRP) worth P3,500.00 depending on the type of membership per month for 18 months. PRP can be used to purchase HOW products or can be converted into cash. Five (5) PRP is equivalent to 1 peso; 6. Sponsor Sales Royalty Rewards earn 262.5 SSRR points per month for 18 months for every purchase of P3,500.00 worth of HOW products of the member he/she sponsored. Five (5) SSRR points is equivalent to 1 peso; 7. Unilevel earnings earn points in every product or repeat purchase of your downline; and 8. Lifestyle Incentives house and lot, car, travel, savings, etc. Accordingly, HOW lures the public to invest through referral system designed to encourage its members to recruit others in order to earn profits instead of selling on the merits of its products. Further, HOW promises to its investor lucrative lifestyle incentives including house and lot, cars, travel incentives and savings that can only be achieved through recruitment of more people to participate in the scheme. The aforementioned investment scheme of HOW has the characteristics of a Pyramid scheme. The Pyramiding scheme involves securities because investor makes an investment of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits. The scheme 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. The Commission has in an earlier Advisory, informed the public that PYRAMIDING, being fraudulent and unsustainable, is NOT a registrable security . The Securities and Exchange Commission has not and will never issue a License to Sell Securities to the Public to persons or entities that are engaged in this business. This scam involves the recruitment of people and thrives with the supply of new recruits to the scheme. Unfortunately, once the recruitment declines, so does the money. Per records of the Commission, GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNESS (HOW) although registered with the Commission as a corporation, IT IS NOT AUTHORIZED to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC) 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 (SRC). Those who act as salesmen, brokers, dealers or agents of GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNESS (HOW) , 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 28 of the SRC and 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) . 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. In view thereof, the public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNESS (HOW) . The public is further advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by aforesaid entity. Should you have any information regarding the operation of GREAT4 INTERNATIONAL MKTNG. CORPORATION DOING BUSINESS UNDER THE NAME AND STYLE OF HOME OF ORGANIC WELLNESS (HOW) , and its representatives, please send your report to the Enforcement and Investor Protection Department (EIPD) at [emailprotected] . For the information and guidance of the public. Pasay City, February 15, 2022.