SEC Issues Advisory Against TuneGaga
The Securities and Exchange Commission (SEC) released an advisory to the public to be cautious when transacting with people soliciting investments for and on behalf of investing entity TUNEGAGA or TuneGaga, insisting that TuneGaga does not have the license and authority from the Commission to solicit investments from the public.
“Based on the Commission’s database, TUNEGAGA/TuneGaga, is 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).,” the Commission wrote in the advisory.
According to the advisory released, an “investment contract” exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is prominent in the scheme of TUNEGAGA/TuneGaga.
TuneGaga on its website, requires those who are interested to earn to register and invest by choosing from any of the nine available Subscription Plans:
- Learner Plan worth Php1,967.95;
- Standard Plan worth Php4,793.72;
- Premium Plan worth Php11,101.25;
- Premium Plus Plan worth Php22,707.10;
- Accelrator Plan worth Php30,276.14;
- Ultimate Plan worth Php42,891.19;
- Business Plan worth Php60,552.27;
- Professional Plan worth Php90,828.41; and
- Platinum Plan worth Php121,104.54.
Investors of TuneGaga will then earn through watching ads on the platform.
“TuneGaga is a platform that PAYS YOU real money (not points) for watching ads! Tunegaga pays you for your attention when you watch video ads that are targeted to you and your interests with a focus on the Music industry,” written on TuneGaga’s about section on its Facebook Page.
Investors can earn from Php2,055.25 up to Php151,381.35 monthly depending on the subscription plan they avail of. Investors can also earn from referral bonus up to $120 or 5% of the subscription amount or plan.
“As such, the Securities Regulation Code (SRC) requires that said offer and sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public,” the advisory added.
The Commission stressed that TuneGaga’s scheme indicates a possible “Ponzi Scheme.”
SEC describes “Ponzi Scheme” as a system 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.
“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,” the advisory added.
Before 2021 ended, investors of the app wrote negative reviews on Google Play Store after the application allegedly just stopped working and displayed “No internet connection. Connect and try again.”
Up to this date, TuneGaga is still available on Google Play Store in over 180 countries and has 1.3-star ratings.
“In view thereof, the public is hereby advised NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by TUNEGAGA/TuneGaga, and its representatives,” SEC added.
The Commission also indicated that the names involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.
“Those who act as salesmen, brokers, dealers or agents of TUNEGAGA/TuneGaga, 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),” the advisory concluded.
This article is published on BitPInas: SEC Issues Advisory Against TuneGaga