NBI Bohol warns vs investing in CROWD1, says firm is engaged in scam

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NBI Bohol warns vs investing in CROWD1, says firm is engaged in scam

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The National Bureau of Investigation (NBI) Bohol Field Office has warned the public against transacting with certain individuals representing a company called CROWD1 Asia Pacific Inc. that has been enticing Boholanos to invest money.

The public warning was issued Thursday by NBI-Bohol Agent-in-Charge Greg Algoso who said CROWD1 has been permanently prohibited by the Securities and Exchange Commission (SEC) to operate.

Algoso said CROWD1 has been found by the SEC to be illegally soliciting and accepting investments from the public under a scheme disguised as a digital marketing business.

According to Algoso, he received a report early Thursday from former NBI-Bohol chief and now San Miguel town Mayor Virgilio Mendez regarding the presence of certain people in his municipality who introduce themselves as agents or representatives of CROWD1.

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Mayor Mendez reported that said CROWD1 agents were actively enticing locals to invest money and to avail of promotional packages and recruit other investors so they will in turn receive commissions.

Algoso said that effective July 2, 2020, the SEC has issued a permanent cease and desist order against CROWD1 prohibiting the company to solicit and accept investments, after finding that said entity has been operating “a fraudulent investment scheme consisting of the sale or offer of inexistent securities in the form of investment contracts to the public.”

An advisory issued by the SEC on May 2, 2020, reveals that CROWD1 is a registered company but it was not authorized to issue, sell or offer securities to the public or pursue this line of business activity as it was not granted a secondary license by the commission.

CROWD1 has no registered securities such as investments contracts and it has no secondary license, which is a requirement under Republic Act No. 8799, otherwise known as the Securities Regulation Code.

By virtue of its incorporation, the company is required to secure a secondary license in order to legally conduct investment activities.

CROWD1 solicits and accepts investments from the public by offering what it describes as educational packages for a minimum of P6,000 and as much as P240,000.

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To entice the public to invest, CROWD1 has promised member-investors five different bonuses: streamline bonus, binary pairing bonus, fear of loss bonus, matching bonus, and residual bonus from games and gambling apps.

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CROWD1 has likewise touted a pairing incentive payable in euros to encourage member-investors to recruit new members.

Algoso advised the public to be cautious in transacting with people who are offering investment opportunities especially in these times of economic crisis. (KB, RT)

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