(Eagle News) — The Securities and Exchange Commission on Thursday, July 12, advised the public to exercise caution when dealing with Building our Success Stories Network Inc (BOSS Network Inc.).
In an advisory, the SEC said that while BOSS Network was registered with the agency, it can only engage in “direct selling of goods and merchandises to consumers” and was “not authorized to offer, solicit, sell or distribute any investment/securities.”
Based on information provided to and gathered by the SEC, people can become members of BOSS Network Inc. if they buy soap business packages, among others, from the company.
A member will then supposedly earn from the sales of those he or she has recruited.
He or she may also receive a bonus from invites of his direct referrals’ recruits.
“Such activities (selling investment products/securities) require a secondary license from the (SEC) and the securities or investment product should likewise be registered with SEC before they can be offered or sold to the public under Sections 8 and 12 of the Securities Regulation Code,” the SEC said.
According to the agency, “such offering of an investment contract may constitute a form of investment scam if investors are not created by the success of the underlying business but instead are derived from the contribution of others.”
It said that while the scheme “may involve sale of products, the same may still constitute an investment scam if the sale of the products is not the primary focus of the scheme.”
The SEC said perpetrators of such investment schemes may be prosecuted and held criminally liable.
“In view hereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with (BOSS Network Inc.) or its representatives,” the SEC said. With a PNA report