The Securities and Exchange Commission (SEC) has ordered Superbreakthrough Enterprises Corporation to stop illegally soliciting investments from the public.

The Commission En Banc directed Superbreakthrough Enterprises, which has been doing business under the name 1UP Time, to immediately cease and desist from further engaging in the unlawful solicitation, offer, or sale of securities in the form of investment contracts without the necessary license from the SEC.

The Commission also prohibited the company from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of its investors. 

The company was likewise ordered to cease its internet presence relating to its investment scheme.

The order covers Superbreakthrough Enterprises President Juluis Allan Nolasco, its directors, officers, and agents.

Nolasco has previously been the subject of a cease and desist order for his promotion of illegal investment activities through Alphanetworld Corporation, otherwise known as NWorld.

The order was issued following the continued monitoring activities of the SEC Enforcement and Investor Protection Department over NWorld and Nolasco, which led to the discovery of the operations of Superbreakthrough Enterprises.

The company was found to have been offering investment packages consisting of health, wellness, skincare, and personal care products through social media platforms such as Youtube and Facebook.

The packages, priced from P10,000 to P188,000, promised returns ranging from 25 percent to 35 percent worth of product discounts, recruitment bonuses, and other incentives.

“A careful examination and analysis of the investment scheme of 1UP Time will readily show that its success and viability is heavily dependent on recruitment and/or entry of new investors who are guaranteed P500 per new recruit/referral,” the order read.

The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC.

Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

While Superbreakthrough Enterprises is registered with the SEC as a corporation, it has not secured the required secondary license that will authorize it to sell or offer securities to the public, as provided under Section 8 of the SRC, in relation to Section 3 of the 2015 SRC Implementing Rules and Regulations.  

The Commission En Banc also emphasized that Superbreakthrough Enterprises’ articles of incorporation specifically provides that it has no authority to solicit or accept investments from the public.

“1Up Time’s act of selling/offering product/investment packages which are securities in the form of investment contracts constitute sans the requisite registration statement necessarily defrauds the investment public and warrants the immediate issuance of a CDO,” the Commission En Banc said.