Apparently, on April 8, 2014, SWA was granted certification by the SEC (Securities and Exchange Commission). This means it is now a legitimate corporation. But this does not mean that it’s business is legitimate.
Like I said before, even if SWA becomes a legitimate corporation, it will not legitimize the pyramiding scam it is involved in – and I say this even on the face of SWA members continuously threatening me with lawsuit and even physical harm.
Take note that a lot of corporations from the past, legit as they were as corporations, were still involved in numerous pyramiding scams. Remember Aman Futures? First Quadrant?
That being said, I again knocked on the doors of SEC hoping that this time they will issue an advisory in re: SWA since SWA is now under their jurisdiction. My letter to the SEC is below:
My name is Howard Chan and I am a staunch advocate against pyramiding scams.
Recently, with the growth of online users, pyramiding scams have taken over the internet. Right now all sorts of scams can be found online from stock investments fraud to advertisement frauds to networking fraud.
One such company which introduces itself as an investment corporation is Supreme Wealth Alliance, Inc. or SWA. This company has been around since 2011. It claims that it was registered in Belize (Central America) as a corporation but was not so in the Philippines until lately. (Please note that SWA has been boasting earlier that they do not need to register as a corporation in the Philippines because, in their own words, they are not “a traditional corporation”).
It came to our attention that on April 8, 2014, SWA was given a certification by the Securities and Exchange Commission (SEC).
We, the staunch oppositionists of SWA and other businesses like it, have sent you numerous emails before regarding our concern because SWA, at that time not yet registered as a corporation here, was projecting itself as an investment corporation. In a nutshell, this is how SWA conducts its business:
- It recruits people to pay P2500.00 as membership fee and such fee is explained to be an “investment”. As to what the fee is being invested on was not clearly explained. However, the member does get free access to free ebooks but SWA’s right to distribute these ebooks is not well explained by SWA either;
- Members, in order to earn, must recruit new members. A member earns about P800.00 per new recruit. Here, it is obvious that their initial investment does not earn but rather, the members earn by recruiting – which is against the Consumer Act because this is already pyramiding.
We have also called your attention before about the fact that SWA is not posting their by-laws on their website. (they have multiple websites here i.e., http://supremewealthallianceultimate.com and http://swaultimate.com/). Because their by-laws are missing, the public is not appraised as to what business is SWA actually authorized to engage in.
Further, SWA has no office address. They only claim that they have their office in Belize and they boast that they do not need to have an office here in the Philippines because they are conducting their business online or in cyberspace and that no physical interaction is needed. And this reasoning is obviously wrong if the Corporation Code of the Philippines is to be strictly implemented.
With the foregoing being said, we’d like to give SWA the benefit of the doubt. However, considering that a lot of SWA members are still strong in the recruiting scene (you can check their facebook pages here, here, here, here, here, here, here, here, and here), we implore the SEC to give an advisory in re: SWA. This is important because a lot of would-be recruits are being lured to “invest” on something which is not clear but all along they are investing in nothing because in the end, in order for them to earn or get their investment back, they will have to recruit someone else to SWA – which is clearly a pyramiding scam (Again, a member only earns thru recruiting someone else).
Hoping for your quick response,
Let’s hope for a favorable response.
On a side note, I find it ironic that SWA decided to register. After conducting its business for three years presenting itself to the public as an investment corporation (without being registered) and when asked why it is not registered, SWA members rabidly scream on our virtual faces that they “do not need to register” because they are conducting their business online!
I am thinking this move is just to add a color of legitimacy to their name. My previous article had had so much an effect on them and they needed to regain their footing. Well, I am glad they registered because finally the SEC has jurisdiction over them.
But just to recapitulate, SWA’s registration does not solve its other legal issues, to wit:
1. The fact that it is relying on recruitment for their earnings (this is against the Consumer Act because that practice is described as pyramiding);
2. The fact that it is not really an investment corporation (but still introduces itself as one to the public) – again, what does SWA invest in?
3. The issue on their right to redistribute ebooks (copyright issues, reseller issues, etc.)
4. Tax issues. If worse comes to worst, I’ll collect the names of all the SWA top earners and submit their names to the BIR. (Kinda like the way how Al Capone landed in jail).