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Public
warned vs. Internet scams
The
Department of Trade and Industry has warned the
public about two Internet-based companies which
have been duping thousands of Filipinos through
a pyramiding scheme.
DTI
Consumer Welfare Division head Bernardino C.
Abundo, Jr. said in a press advisory last week
that the Securities and Exchange Commission
(SEC) issued Cease and Desist Orders (CDO) last
January 26, 2001 to Prosperity.Com, Inc. and
Powerhomes Unlimited Corporation.
Abundo
added that the CDOs were issued on the ground
that the two companies are engaged in a
multi-level marketing scheme, which victims said
is a form of a pyramiding scam affecting
thousands of Filipinos. However, Prosperity.Com
was able to secure a Temporary Restraining Order
(TRO) from the Court of Appeals last Feb. 19,
holding in abeyance the enforcement of the SEC
order.
He
described Prosperity.Com as an Internet-based
local firm engaged in the selling of computer
software and services, including but not limited
to, the selling and hosting of websites although
it is not engaged in the business similar to
Internet service providers.
Under
it's scheme, an investor, upon payment of a
US$294 membership fee, is allegedly entitled to
a 15-megabyte website, a Prosperity coupon of
US$2,700 upon reaching a certain level, and a
redemption coupon of US$92 upon recruitment of
at least two other investors. The coupon is
credited to the investor's website and can be
used to purchase appliances, furniture and other
goods.
On
the other hand, Abundo revealed, Powerhomes
Unlimited Corp. is engaged in the transaction of
promoting, acquiring, managing, leasing,
obtaining options on, development and
improvement of real estate properties for
subdivision and allied services, and in the
purchase, sale, and/or exchange of said
subdivisions and properties through network
marketing.
Powerhomes
requires the investor, which it calls a Business
Center Owner (BCO), to pay US$234 as his
enrolment fee, which entitles him to recruit two
investors who should pay US$234 each.
The
BCO gets back US$92 from his recruitment of the
two investors.
In
case the two referrals/investors recruits a
minimum of four persons each recruiting two
persons who become his or her "down
lines," the BCO will receive a total of
US$147.20, after Powerhomes deducts US$36.80 as
"property fund" from the gross amount
of US$184.
After
recruiting 128 persons in a period of eight (8)
months in each "Left" and
"Right" business groups, or a total of
256 enrollees whether directly referred by the
BCO or through his "down lines," the
BCO received a total of US$11,412.80 after
deducting the "property fund" of
US$363.20 from the gross amount of US$11,776. He
now has an accumulated US$2,700 as
"property fund" placed in an account
with Chinabank. The fund is supposedly used as a
partial or full downpayment for the real
property chosen by the BCO from any of the
company's accredited real estate developers.
Abundo
asked the public to inform their office should
any representative of the Internet companies
offer their services to them, so the DTI can
take appropriate action.
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