October 2, 2020 — The Securities and Exchange Commission of the Philippines (SEC) has issued a cease and desist order against Forsage and Forsage Philippines, ordering it to stop soliciting unregistered investments from the public using a crowdfunding platform.
The order issued Sept. 17 ordered Forsage to cease and desist from offering the unregistered securities in the form of investment contracts as well as cease its internet presence.
“The SEC further ordered Forsage to refrain from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying in any manner all related assets to ensure the preservation of the assets of the investors.”
The order covers Forsage including its operators, representatives, salesmen and agents, which the SEC listed in its press release.
Forsage offers two commission programs or cycle tiers with a minimum investment of 0.05 ETH, equivalent to around Php 600 at the time the SEC released its cease and desist letter. The regulator further said that the Forsage X3 and X4 programs have 12 income slots that can be activated, each slot having “endless” referral incomes, indicating “boundless” income potential for investors. Forsage was also promising income through “spillovers” — or surplus of referrals.
SEC said Forsage has multiple violations. One is the Securities Regulation Code that states all securities cannot be sold unless it is registered and approved by the Commission. Forsage is also not qualified to operate a crowdfunding entity, because it must first be duly organized under Philippine laws.
Finally, Forsage is not in the list of licensed virtual currency exchanges from the Bangko Sentral ng Pilipinas (BSP).
SEC had earlier warned the public to stop investing in any scheme offered by Forsage and its agents and operators. Forsage however, the Commission noted, continued to solicit investments from the public “and even attempted to discredit the SEC by spreading false or misleading information that they are outside the Commission’s jurisdiction.”
SEC ended its statement with an advice to the public to stay away from Ponzi Schemes.
“In many Ponzi schemes, the perpetrators focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business. It is not an investment strategy but a gullibility scheme, which works only as long as there is an ever increasing number of new investors joining the scheme.”
This article is published on BitPinas: PH SEC Issues Cease and Desist Order to Forsage and its Promoters
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