SEC: BOSS network is a scam, soap-perfume marketing program stinks
The Securities and Exchange Commission (SEC) on Thursday warned the public against placing their money in Building Our Success Stories (BOSS) Network Inc., an allegedly shady company offering investment contracts and promising profits.
“It must be emphasized that the company is not authorized to offer, solicit, sell or distribute any investment/securities,” it said in an advisory.
The SEC said such activities require a secondary license from the Commission, and the securities or investment product should also be registered with SEC before they can be offered or sold to the public under the Securities Regulation Code (SRC).
Based on the information communicated to and gathered by the SEC, BOSS Network is enticing people to become members provided they buy perfume and soap business packages with expectations of profits.
A member will supposedly earn from the sales of those he has recruited or his “downline,” or receive a bonus from invites of his direct referrals’ recruits.
The SEC said any offering that involves investment of money in common enterprise, with the expectation of profits primarily from the efforts of others, comprise investment contract.
It explained that such a contract may constitute a form of investment scam if profits are not created by the success of the underlying business, but instead are derived from the contribution of others.
“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. In such a case, the sale of the products is just being used in order to make investment scam appear to be legal,” said the SEC.
The SEC said the registration of BOSS Network with the Commission only confers juridical personality and authorizes the company “to engage in direct selling of goods and merchandises to consumers.”
“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Building Our Success Stories Network Inc. or its representatives,” it added.
It said perpetrators of such investment schemes may be prosecuted and held criminally liable. (PNA)