The Securities and Exchange Commission (SEC) is warning the public against dealing with three unlicensed businesses who have been soliciting unauthorized investments online.

The SEC released advisories on its investigations of the entities identified as 888 Partners Corp. Budgetarian Online Shop, Integrated Digital Success, and Hailey & Holley Spa, following reports and complaints from the public.

888 Partners Corp., which claims to be the “largest e-commerce intermediary” in the country, was established to “recruit online part-timers to buy store products from Amazon, Lazada and Shoppee, thereby helping the merchant to improve his store ranking so that the merchant could get more real opportunities and customers,” according to the SEC.

Its social media platforms require merchants to pay a commission per order with a 10 percent service fee. The remaining commission is remitted to its member-part-timers.

Part-timers are required to invest P500, and are entitled to a daily salary worth P500 and a 5 percent direct referral commission if they are able to recruit more people to use the platform.

On the other hand, Integrated Digital Success headed by Chelsea Mirando is “soliciting investments from the public, which are to be purportedly managed by professional traders and asset managers.”

Investors can choose between either the Starter Plan or Elite programs, the former offering investments from P500 up to P200,000 “for a guaranteed profit of 20 percent in seven days, and the latter enticing investors with a “50 percent guaranteed profit in 15 days for a minimum of P1,000 to P500,000 investment.”

It also offers an “affiliate bonus” and leadership bonus worth 10 percent of the investment received by the business from referrals made by members.

The SEC said 888 Partners Corp. and Integrated Digital are “not registered as a corporation or partnership and operates without the necessary license and/or authority 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).”

It noted that the businesses’ investment schemes are similar to pyramid or Ponzi schemes where investors profit off recruitment fees and member contributions instead of product or service sales.

Finally, Hailey & Holley Spa headed by its proprietor Ionie Mae Cruz Guzman has been reportedly soliciting around P50,000 minimum to “invest in the expansion of its branches and promises a return of investment in 12 months with a guaranteed profit of five to 10 percent per month.”

“By the mere fact that Hailey & Hollyn Spa is not registered as a corporation, one-person corporation (OPC) or as a partnership, it necessarily follows that it cannot be issued secondary license to solicit, offer, and sell investment to the public as required under Section 8 of the Securities Regulation Code (SRC),” said the commission.

The SEC said salesmen, brokers, dealers, agents, representatives, promoters, recruiters, influencers, and endorsers of any of the listed businesses who are taking part in the investment schemes may face criminal offences under Section 11 of the Financial Products and Services Consumer Protection Act (FCPA) and Section 28 of the SRC.

Violators may be penalized separately with a maximum fine of P5,000,000 or 21-year imprisonment pursuant to Section 73 of the SRC.

The commission urges the public to report and forward complaints of any suspicious or fraudulent activities, particularly from online businesses, to the Enforcement and Investor Protection Department of the SEC through [email protected].