Corporate regulator Securities and Exchange Commission (SEC) issues a Cease and Desist Order (CDO) against Building Our Success Stories (B.O.S.S.) Network.
In its order, the SEC orders the B.O.S.S Network to cease and desist from engaging in the sale, or offering for sale, of securities in the form of investment contract until the company was able to secure the necessary registration and corresponding license to offer or sell securities.
Furthermore, they are also prohibited from selling, encumbering, conveying, or disposing of any of their properties and assets without prior approval from the SEC.
Image: Facebook/BOSS Network
The CDO was released after the Enforcement and Investor Protection Department (EIPD) of the SEC received information about the operation of the said company, prompting them to conduct a full-blown investigation.
The EIPD was able to confirm that the B.O.S.S. Network’s investment scheme involves the sale and offering of securities in the form of an investment contract by offering and selling products with guaranteed returns and income.
Members who will be able to recruit new members will also receive a referral bonus once the recruited new member avail of the package of products.
Results of the investigation
However, records show that a number of investors have already filed a complaint against B.O.S.S. Network for the company’s failure to pay guaranteed returns and bonuses.
Image: Facebook/BOSS Network
The EIPD also found out that while the B.O.S.S. Network is a registered corporation, it does not possess a secondary license to operate as a broker or dealer, and is not a registered issuer of mutual funds, ETFs and proprietary/non-proprietary shares. Moreover, the company has not registered any securities pursuant to Sections 8 and 12 of the Securities Regulation Code.
“Clearly, BOSS Network’s business model and capitalization cannot sustain the promised returns on investment, especially if no new investors will come in,” the SEC stated.
“The findings of the EIPD warrant the issuance of a CDO because the act of B.O.S.S. Network in selling or offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the SEC stated in its order.
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