The Securities and Exchange Commission (SEC) has ordered Wellcons “WELLCONS” Unlimited Systems Inc. to cease from all of its operations. Following the issuance, the Cease and Desist Order dated June 23, 2022 was immediately served by the SEC Cagayan de Oro Extension Office (CDOEO) in Valencia City, Bukidnon as the primary address of WELLCONS.
On 3 February 2022, the SEC Enforcement and Investor Protection Department (EIPD) posted an advisory against WELLCONS – informing the public to exercise caution in dealing with any person who is soliciting investments or selling unauthorized securities for and on behalf of WELLCONS.
WELLCONS’ president, Mr. Merarie E. Pailagao, its officers, and agents are directed to immediately cease and desist from further engaging in the sale and/or offer of unregistered securities, and to cease its internet presence relating to its investment activities until the requisite registration are filed with and approved by the Commission.
The SEC likewise directed 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 for the benefit of affected investors.
Reports said that WELLCONS is enticing the public who need income to invest with it by buying their investment packages, and promising investors a guaranteed return of investment, plus additional benefits and a supply of products. Investors need not exert effort in selling/distributing WELLCONS products to earn. What is only required is to simply recruit new members to join and invest.
The EIPD confirmed it with the other concerning departments of the SEC that WELLCONS, although a registered corporation is NOT allowed to solicit investments from the public. A corporation may only solicit investments when issued with a secondary license to which in this case, WELLCONS only holds the primary registration license.
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.
WELLCONS offers/sells unregistered securities either a Binary System or the Pangkabuhayan program, the former being a gateway to a member’s entitlement and enjoyment of the profits/benefits given in the latter.
During the course of its investigation, the EIPD and the SEC – CDOEO has been receiving numerous complaints from its member-investors for having delays in receiving their guaranteed profits, worse, unpaid at all. Complainants state as well that their demands for their original investments were completely ignored by WELLCONS.
“We have been very vigilant on their operations in Bukidnon and in some parts of Misamis Oriental and Agusan del Norte. Our investigators went to these areas to verify the existence and the operations of WELLCONS. It is indeed, very rampant with their (WELLCONS) growing number of members, hence, this enforcement is addressed” says Lawyer Frederick A. Enopia, Director of SEC – CDOEO.
WELLCONS incorporated with the SEC on April 19, 2021.
Read full text of the Cease and Desist Order in the link below.