The Securities and Exchange Commission (SEC) has ordered Superbreakthrough Enterprises Corp. to stop operations for offering unregistered securities to the public, which the company has done without the necessary license.
In an order dated December 5, the SEC Commission En Banc ordered Superbreakthrough to immediately cease and desist from any further involvement in the unlawful solicitation, as it has been doing so under the name 1UP Time.
According to the SEC, 1UP Time has been selling and offering products and investment packages through social media platforms, which the corporate regulator found to be “heavily dependent” on recruitment and the entry of new investors.
Superbreakthrough — headed by president Juluis Allan Nolasco — has been offering two investment packages, including the regular product package which ranges from P10,000 to P188,000.
Such a package is said to have discounts ranging from 25% to 35%, a line bonus ranging from P5.00 to P500, and a package and builder bonus ranging from 600 points to 10,000 points.
Meanwhile, the NL1GHTENGLOW Package is priced from P10,000 to P52,000, with incentives including product discounts from 25% to 35%, a line bonus of P5 to P100, and builder bonus points ranging from 600 to 3,000.
The SEC noted that under the system, the higher the package that was purchased translates to higher incentives or bonuses that the member-distributors would receive.
“A careful examination and analysis of the investment scheme of 1UP Time will readily show that its success and viability is heavily dependent on recruitment and/or entry of new investors who are guaranteed P500 per new recruit/referral,” the order read.
The company was reported to have implemented the binary system, where each member would be placed on top of a binary team, and every new downline pair would translate to a P1,800 pairing bonus.
“The pieces of evidence… sufficiently established that 1UP Time, Mr. Nolasco, its directors, officers, and agents are selling and/or offering unregistered securities in the form of investment contracts to the public without the requisite license from the Commission, in violation of the SRC and the SRC-IRR,” the SEC said.
The SEC was referring to the Securities Regulation Code and its implementing rules and regulations, which govern financing and lending companies within the country.
“1UP Time’s act of selling/offering product/investment packages which are securities in the form of investment contracts constitute sans the requisite registration statement necessarily defrauds the investment public and warrants the immediate issuances of a CDO,” the order read.
The same order noted that Nolasco has previously been the subject of a cease and desist order for his reported promotion of illegal investment activities through Alphanetworld Corp. or NWorld.—RF, GMA Integrated News