Wellcons Unlimited Systems Inc.'s corporate registration has been canceled by the Securities and Exchange Commission…
Astrazion’s company registration is revoked by the SEC
Astrazion Noble Task Community Foundation and Astrazion Global Holdings Philippines, Inc.’s company registration has been revoked by the Securities and Exchange Commission (SEC) for soliciting investments from the public without the necessary authorization and through a fraudulent scheme.
As a result of violations of Section 44 of Republic Act 11232, or the Revised Corporation Code of the Philippines (RCC), in relation to Sections 8.1, 28.1, and 26.1 of Republic Act 8799, or the Securities Regulation Code (SRC), Presidential Decree No. 902-A, and Section 179(j) of the RCC, the SEC Enforcement and Investor Protection Department (EIPD) revoked the certificates of incorporation of Astrazion Foundation and Astrazion
The order stated that primary registration with the Commission as a corporation “must be noted that primary registration with the Commission as corporation is not a license or authority to solicit investments from the public because it only grants the corporation juridical personality and to operate within its purpose only but does not authorize it to issue, sell, or offer securities for sale or to undertake investment activities which require prior registration and/or a secondary license from the Commission.”
Citing Section 8 in relation to Sections 3 and 12 of the SRC, it continued, “Generally, securities cannot be sold or offered for sale within the Philippines unless such securities have been registered with the Securities and Exchange Commission through the filing and subsequent approval of a registration statement and a corresponding permit to offer/sell has been issued by the Commission.
Their case involved the operation of an online multi-level marketing network by Astrazion Foundation and Astrazion Global, which extensively pushed the sale of their digital currency, the AZNT Token, for a price of 10 cents per token.
The group made available to the general public seven packages with daily returns of 3 percent as a guarantee. The beginner package, which costs $100, could produce $300 in 100 days, while the double platinum package, which costs $10,000, promised an incredible USD30,000 in the same time frame.
By promising that the AZNT Tokens would be registered, listed as a cryptocurrency at Coin Market Cap, and sold in the virtual currency trading platform Binance, the group persuaded the public to invest. It is claimed that the AZNT token’s value, which is currently 10 cents, might increase to $10.
The group offered investors a residual income and a direct referral income distribution in addition to the alleged possible increase in the value of the AZNT Token. Payouts were planned to be made available via Coins.ph
As part of the scam, securities were sold and made available to the public in the form of investment contracts, enticing people to put their money into a group project with the promise of returns mostly coming from the labor of others.
The commission had Astrazion Global and Astrazion Foundation listed as legally formed entities.
However, they never received a secondary license from the commission as a broker-dealer or securities issuer, nor did they register any securities for an SRC-compliant public offering.
According to the EIPD, the entity’s operations constitute a “Ponzi scheme,” which is a type of investment fraud in which new investors’ money is used to pay alleged returns to previous investors.
“They frequently entice prospective investors by offering to put their money into ventures that are said to yield great returns on investment. The Ponzi scheme will then collapse or completely break down, and the new investors at the base of the pyramid will no longer receive profits, it added. This will happen if it becomes difficult to attract new investors or if a big number of current investors decide to cash out.
The SEC issued a warning against the Astrazion Group on February 3 to caution the public against investing in the company and other organizations of a similar nature.
The commission en banc issued a cease and desist order against the group on May 12; on August 11, the injunction was made permanent.
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