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SWA is now a Corporation, but this does not legitimize their business scheme!

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:

Dear Sir/Ma’am,

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:

  1. 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;
  2. 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,

Howard Chan

Founder, UberDigests.info

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).

About the author

Howard Chan (The Student)

Howard considers himself as an armchair activist. Though his street rally days are in a slumber he still advocates changes via social media. He is a strong believer that awareness of various social issues is a good starting point in order to break out from the stranglehold of an oppressive system which only benefits the few. He is also a full time student and a part time blogger, part time web designer, part time web manager/designer for various clients. (Note: Howard Chan passed the 2014 Bar Exams and was admitted to the Philippine Bar on April 29, 2015. That being, all posts after April 29, 2015 authored by him are now under the name Howard Chan for the purpose of distinguishing posts he made as a non-lawyer from posts he made after admission to the bar).

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  1. Franklin Mira

    Did you know about PLR and MLR?

    1. Howard Chan (The Student)

      yeah but that’s not what SWA claims.. and that’s impossible because how can they get pLR and MRR rights on Coelho’s books which they claim they have in their library.. plus, they do not really “sell” ebooks. They give it “Free” to members.. i made a thorough discussion on this on my previous article: http://howard.uberdigests.info/2013/11/19/swa-is-a-scam/ – you may have to scan through the article because it’s quite a lengthy article..

      1. Harriet Chan

        Howard Chan They claimed to have PLR and MRR on Paolo Coelho’s books?

        1. Howard Chan (The Student)

          Harriet Chan yes and other authors.. they have a listing somewhere of available ebooks in their elibrary.. which is ludicrous! and they do not really sell ebooks.. they give it free to members.. again, the economics of that makes no sense at all..

      2. Jun Santos

        Where did SWA say they have Coelho ebooks? Show the link please.

        1. Howard Chan (The Student)

          Hi Jun, sorry am not able to show the link.. it was a facebook post by swa and i’m blocked by a lot of SWA fb accounts.. they team Viloria SWA DID disclaim that any Coelho book is found in their e-lib.. they said all they have are business ebooks (but then again, a lot of these business tips are outdated and come free by doing a simple google search, and am not talking about pirated copies either, these resources are freely provided by a lot of forums, blogs, and video tutorials) – so basically, the free ebooks of SWA are worthless..

  2. icekool

    yes please see SEC ruling for POWERHOMES in 2000 or 2001 where Powerhomes is SEC registered but the MLM (Binary) was a pyramiding which is illegal in SEC RA 8799 sec 8.1. Very clearly stated there that this kind od scheme is illegal. the case number is GR_164182 the CDO stays until the final ruling in 2008. Somebody just initiated the investigation of powerhomes MLM system or binary pairing. very powerfuil but illegal at all sense. This SWA is same boat as all otthers using binary. The principle of “You Rob Peter to Pay Paul”. as simple as that. or the benefits of the 1% at the expense of the 99%. so hindi siya sustainable. it means, mas marami ang hindi kikita (99%) so this will keep you recruiting foever…. kasi di siya sustainable. sa SWA naman ang kumikita ng ssure ang founder, kasi ung pass three or pass two nila , un ang sure lagi sa mayari no matter what. Its a bigger opicture of a PALUWAGAN system. habang may mga bagong sali, di siya napuputol pero kung walang sasali wala ng kita.

    1. Howard Chan (The Student)

      Thanks icekool.. will look into that case.. 🙂

  3. Rey

    Hi,
    I would think SWA simply used SEC ready forms which can be bought at SEC for P500.00 its complete with BY-Laws and Article of Incorporation and total cost for SEC registration for a minimum Capital 200k is only around 3.5k. It would be great if we can secure the 1st page of SWA SEC registration which will show what type of business SWA is registered. Its of public record and supposedly available for public scrutiny.

    If we can secure a copy, next step is if SWA (w/c I clearly doubt) registered w/ BIR if it is, as what? Then BIR now can get to look at SWA for TAX Evasion.

    Here is a recent blog that also dealt on SWA’s Illegality and Immoral Business Model
    http://burngutierrez.com/alert-new-scams-to-avoid-2014/

    1. Howard Chan (The Student)

      Yes we can actually secure a copy of their Certification (for P500.00 I think.. that’s how much we paid last time we got a copy of a Cert of Incorporation from SEC Baguio for research).. Anyway, SWA should post their AOI and by-laws online because that is a requirement because like you said, that’s how the public gets appraised as to what areas of activities SWA is supposed to be authorized to engage in.. but nevertheless, by just looking at the image of their certification which they are boasting around, it is clear that SWA can’t engage in any investment scheme without additional licenses.. but we’ll wait for what SEC has to say.. perhaps after this Holy Week… thank you for sharing the burngutierrez link.. let’s spread awareness about SWA and all other similar “businesses”

      1. icekool

        Thats correct. Just to refer to SEC RA 8799 sec 8.1, it is not legal to earn commission or any such for the effort of others, which can mean that you earn it because new members signed in with paid in fees. And this kind is not allowed in our law. All kind of MLM with this system is illegal in SEC 8799. Like One company I know now which has SEC license however it clearly states FOR REMITTANCE ONLY NOTHING FOLLOWS, but they are doing BINARY compensation plan which is not in the permit. Search the SEC website for this RA . it can be useful. It takes a meaningful letter to SEC asking them to investigate the complan of any or a particular entity licensed or unlicensed one.

  4. Michael

    Please show the official webpage where they say their an investment corp.

    1. Howard Chan (The Student)

      Hi, sorry, it seems that all SWA sites modified their “About” us” page and removed the word “investment company/corporation”… they now simply state they’re an online marketing business.. but again, this is belied by their marketing spiel where they induce people to “invest P2,500.00” into their business in exchange of free access to their elibrary…so even though they modified their “about us” page, they’re still indirectly stating that they’re engaged in investment schemes.. but regardless, SWA is not an investment company.. members do not “invest” they merely pay a membership fee and earn from membership fees.. again this is against the Consumer Act..

  5. Jutmore Aswigue Taliping

    bravo, howard! Did SEC already send you a confirmation of their receipt of your letter? I suggest that you also forward the hardcopy of the letter to SEC. Hope they will immediately act on it. I-push mo yan bro.

  6. Howard Chan

    Thanks bro.. will do the hard copy after the Holy Week..

  7. Howard Chan

    Thanks bro.. will do the hard copy after the Holy Week..

  8. Jutmore Aswigue Taliping

    Yes howard so that it will become part of SEC's records. Mas madali nila actionan yan pag naka-hardcopy.

  9. Rine

    I also saw this in DSAP (Direct Selling Association of the Philippines)

    http://www.dsap.ph/the-industry/how-to-differentiate-a-legitimate-direct-selling-company-from-pyramiding-using-the-8-point-test.html

    I hope this helps in determining a networking company (MLM) for those who will join one. I tried using the 8 questions on SWA and mostly NO are my answers. Unlike to the other companies, I had all yes as the answer.

  10. Rey P. Macrohon

    Bro Check this out! Which will confirm one thing that had been said over and over, ironic isn't it . https://www.facebook.com/photo.php?fbid=10201927366174487&set=a.1988564602482.2096055.1494335848&type=1&theater
    If this happen, all the better. Now open for public and government scrutiny.

  11. icekool

    Well said and done. SWA maybe registered with SEC but on what RA. since they should be also registered in SEC under RA 8799 which covers the pyramiding scheme which states you cannot earn commission by the effort of others. Meaning, you get paid when new members pays and join under sec 8.1. If they are not registered under this RA then the MLM part is still illegal. Please check

  12. J

    Hi, Howard! I just want to know, have you ever written a letter to SEC regarding SWA? I’ve been wanting to write a letter of complaint about it and its business model, since I’m getting pissed at this stupid scheme. There are so many members of SWA in my hometown and if you don’t argee, they treat you like you’re stupid, which is kinda ironic, haha. I’m just starting to get concerned because more and more people(especially the younger ones) are getting victimized and I think it’s an abomination for the Filipino people to be so easily fooled by ‘easy money’.
    Anyways, keep up the good work.
    Cheers!
    -J, Student, BS BAA, UP Diliman

    1. Howard Chan (The Student)

      Hi J.,

      I’ve been meaning to file a letter-complaint. But I’m worried it will only be ignored because, in the first place, I am not a SWA investor. I guess that is also the reason why SEC is not responding to my email complaints. Anyway, I’ll try to submit one this week. 🙂

      1. J

        Hiya again, Howard! 🙂
        I’m going to try to send an e-mail to SEC. If more people will complain, I think SEC will eventually take notice. I do hope that they will investigate now before SWA attracts more people, then it’ll be too late. I highly doubt if SWA ‘investors’ will complain, given the level of brainwashing. And of course, who will complain about Php 2,500? It’s a lot of money, but it still is not enough motivation for people to file a complain/sue.
        Kudos!
        -J, Student, BS BAA, UP Diliman
        PS What is SEC’s e-mail? 😀

        1. Howard Chan (The Student)

          Hi J,

          Thanks! I actually emailed all the email addresses here: http://www.sec.gov.ph/aboutsec/locationanddirectory.html

          I’m contemplating on finally filing a written complaint (hard copy) this week. Wish me luck.

          Best,

          Howard

  13. J

    Thank you, Howard 🙂
    I’m going to write an email(similar to yours) to SEC later this week.
    Best of luck!
    -J, Student, BS BAA, UP Diliman

  14. Vigilante

    THERE’S ALSO THIS AEON TRAVEL INVESTMENT SCAM. ASK KO LANG BRAD KUNG ANO TINGIN MO. KC ANG SISTE EH MAGIINVEST KA DAW PARA MAY PAMBAYAD KA SA MGA HOTEL FOR A DISCOUNT. YUNG INVESMENT MO YUN ENTRANCE FEE PERO MAY EXTRA PERKS KA PAG MAKAENTICE KA NG OTHER INVESTOR PARANG PWEDE PERK AY TRAVEL DIN OR CASH. WAL DIN SEC ANF KUMPANYANG ITO. SO SCAM DIN!

  15. alvin

    pls pwede din po ba iresearch nyo UPWARM. mdami n po naloko ang company na to at kaming mga member ay hindi nabayaran, nginvest kme after 2weeks bglang wala ng pambayad ang compny at hindi n nmen nbawi ang aming puhunan, pro sa kabila ng lahat patuloy pa rin ng ooperate ang UPWARM sa pamumuno ng kanilang presidente si Rodolfo “aka Panot” Miranda. Ang masaklap dito ang ibang grupo ay patuloy na kumikita pro ang ibang grupo ay binalewala na lng ng kumpanya dahil hndi n nila mabayaran ang mga mymbro nito. sana matulungan mo kme mga biktima ng UPWARM lalong lalo na ang walang hiya nilang presidente na si alyas Panot.

    http://www.upwarm.biz —>>>the website
    https://www.facebook.com/groups/260634040783202/
    https://www.facebook.com/groups/Upwarmpasig/
    https://www.facebook.com/groups/435631896573306/

    1. Howard Chan (The Student)

      Alvin, cge titgnan q ang mga links na binigay mo, meanwhile, qng gusto mu lumapit sa mga ahensya ng gobyerno, pakitignan ang artikulong ito: http://howard.uberdigests.info/2014/06/04/steps-in-filing-complaints-against-scams-in-the-philippines/.. maraming ahensya ang pwede tumulong sa inyo para mabawi puhunan niyo.. at hindi niyo kelangan gumastos ng pera para matulungan ng gobyerno. Ang kelangan lang ay desidido kau na kasuhan ang mga scammer na iyan.

      1. alvin

        ofw po ako and gus2 q man po mgreklamo hndi q magawa mdyo malaki ang pera nainvest q sa kanila, ang masaklap lang ay patuloy pa din nanloloko ang mga ito at nkkuha pa ng SEC at pinagmamalaki pa nila sa FB groups. Tibay ng mga mukha..bigay nyo mga pera ng mga taong niloko nyo.. kung sino man po ang nkkabasa nito SCAM po ang UPWARM sa pamumuno ni Pres. Rodolfo “aka Panot” Miranda.

  16. Howard Chan

    hindi ito paninira. kinabahan kayo sa blog q kaya napilitan kaung magregister, pero shallow compliance lang yan.. marami pa kayong nilalabag na mga batas! bilang na araw niyo!

  17. Jampong Seller

    Wag nyo lang pansinin yan…mga partner wag na kayong mag comments dito ..pinapasikat nyo lang ang blog n ito mag partners…. maraming naiinggit sa SWA kasi sikat n ang SWA… ito ang office ng SWA sa pilipinas punbtahan nyo pls…

    2093 M reyes st. Brgy. Pio delpilar makati…..

    Hindi puro bulaan ang mga pinag sasabi nito sa SWA… hayaan nyo na sya .. inngit lang yan… ganun talaga kapag sikat lalong sumisikat ang SWA.. at salamt sayo po habang ginaganyan mo ang SWA lalong kumikita kami…. ang mangyayari nito balang araw mayaman kmi.. ikaw pano? kung makikinig ka sa taong ito….. join ka na….. kapag hitik ang bunga ng puno ang daming bumabato.. at yon ang SWA…. peace…

  18. fuuuuu

    howard, nice write up.

    im hoping to see the “spear” which will pierce SWA’s corporate veil 🙂

    1. Howard Chan (The Student)

      Yep, and it will be pierced.. just a matter of time.. conduit lng an g sa to scam people.. hehe

      1. jessie reyes

        sir howard thanks for the info regarding swa , alam mo ni recruit ako dati ni jeff perez , nagtanong ako kung ano ito , sabi niya basta sumali daw ako , then after a month nung nag tanung ako ayaw sumagot at sinabi na kausapin ko daw si johnny bodegas , for me masama ugali ng leader nila kasi hindi siya maganda example kasi suplado at mayabang

  19. JanJan

    Hi Howard,

    Thanks to your effort and vigilance sa pag-gawa mo ng article about SWA. I feel sad sa mga relatives ko at mga friends ko who have joined this scheme. I forwarded your blog about SWA is a SCam but sadly nasisilaw sila sa pangako ng mga uplines nila. I hope one day ma unfoil din ang totoo tungkol dito.

    1. Vigilante

      it will… it’s just a matter of time.

  20. Ozzy

    Kudos to you Howard!

    Keep on doing what you’re doing and bring these guys down. I believe that your previous article was a major player in forcing SWA to secure an SEC registration and to change the info in its ‘About Me’ page. Again, if their claim is true that they don’t need to secure an SEC registration because they’re not a “traditional local business”, then why did they go ahead and register? It only raises more eyebrows and questions.

    I just want to give my two cents on the matter, though. Given the fact that SWA made changes related to your biggest arguments with them, it’s seems that your move in exposing their stink have dealt them a blow. Even if they only have 20k members and have only a handful of millionaires, they’re still a force to reckon. Therefore, do take the death threats seriously. A person who makes millions legally or illegally will do whatever it takes to keep the money flowing. You have played a major part in forcing them to make changes and that is good, but it has also put you in the crosshairs.

    Take care of yourself.

  21. Ryan

    Hi howard! Actually i am a bit curious about this SWA because a lot of my personal friends are into it that is why i made my own research because if his one is good ill invest on it but when i read your blog i realized tama nga anu, and how on long i will wait to earn back my registration fee?im not that negative but its intiguing. With my 2,500 i can put up a buy and sell like with 2500 i can buy a wholesale product of 100 pc item @P25/item i will sell it for P60 each, now i earn P35/itemx100pcs. Thats P3,500 in one transaction,i mean why should i join SWA anyway where i will convince and wait for so long to get my money back again. Again only the owner get tons of your money immediately while your wait forever to earn your registration back.

    1. jnn guyen

      I have read your issue, try refundyourmoney.net they can help you like they helped me and retrieved my money.
      Good Luck

  22. Keyzone

    Hi, this is the name of allegedly a top earner in SWA: JAYSON VILLAVICENCIO
    https://www.facebook.com/SupremeWealthCompany2

  23. Rickey

    SWAPI is really a scam. It is very oviious

  24. jojo

    salamat sa mga pagpapaliwanag mo Howard tungkol sa pyramiding scam.
    buti nalang nagsearch muna ko sa google at nakita ko ang mga rticles mo.

    more power!

  25. Tanja

    Tama.. kahit legit na corporation kung illegal naman ang raket eh di criminal pa din.. tan ang SWA o SWAPI. Illegal

  26. Roxie

    amp… kelan kaya madadala mga pinoy sa mga networkingscam na to

  27. lil

    Hi Howard ,I’m not SWA member, they said these are their proof that they are legal. But I dnt think so, sanitary permit? and the business permit is trading, store? can you explain please.

  28. lil

    sorry I can’t paste the fotos.

  29. gty

    MAHIYA NAMAN KAYO Scam for Worldwide Access SWA SA PANG DEDENGOY NINYO SA KAPWA PINOY NINYO. TSK TSK. PIRATED PDF BOOKS pa

    1. Denz

      Ikaw ang mahiya gty. Anong pirated pdf books ang pinagsasabe mo jan?

      #cindyaranetapaat

  30. juan felipe

    does the author hates network marketing? or just pyramiding schemes?

  31. iHATEhoward

    hi Howard?.Ano na nakuha mo sa blog na ito? Kung hindi mo alam ang offis ng SWA sa Belize problema namen?..Wag ka kasing bobo magresearch ka muna..SAAN na ANG RESULTA NG LETTER MU SA SEC??????.kung wala pa BETTER DELETE ThIS BLOG AND SAY SORRY FOR YOUR DAMAGES..and stop this fucking shit..ayaw mu lang na kumita ang mga PILIPINO kaya lahat ng opportunity binabalewala nyo at sinisiraan nyo pa………SAAAN NA NARATENG MU NGAYUN?..MAY RESPONSE BA?….SWAPI is 100% LEGAL.

  32. iHATEhoward

    hi Howard?.Ano na nakuha mo sa blog na ito? Kung hindi mo alam ang offis ng SWA sa Belize problema namen?..Wag ka kasing bobo magresearch ka muna..SAAN na ANG RESULTA NG LETTER MU SA SEC??????.kung wala pa BETTER DELETE ThIS BLOG AND SAY SORRY FOR YOUR DAMAGES..and stop this fucking shit..ayaw mu lang na kumita ang mga PILIPINO kaya lahat ng opportunity binabalewala nyo at sinisiraan nyo pa………SAAAN NA NARATENG MU NGAYUN?..MAY RESPONSE BA?….SWAPI is 100% LEGAL.

    PAKI SAGOT…..dami mung pinuputak jan

    1. iLOVEhoward

      Hahaha. another ignorant.

  33. lyka

    Babagsak din ang SWA, ngayon pa nga lang hinde nyo na mabayaran mga members nyo. Tignan nyo FB ng SWA, delay payment daw, neknek nyo! Kwento nyo sa pagong!

  1. SWA is a Scam! | Filipinolosophy

    […] This of course does not legitimize SWA’s business. Since this article is too long, please check this link for my discussion on this: http://howard.uberdigests.info/2014/04/15/swa-is-now-a-corporation-but-this-does-not-legitimize-thei… […]

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