By Jigger J. Jerusalem
Correspondent
THE fate of networking company Jocals 688 Beauty and Wellness Products Trading Inc. now hangs in the balance as the Securities and Exchange Commission (SEC) commissioners en banc will start to deliberate whether or not the firm will resume its operations or not.
Jocals688 was at the center of controversy after the SEC issued a cease and desist order against the company for allegedly being involved in financial taking activities.
According to lawyer Renato Egypto, SEC director for Northern Mindanao and Caraga regions, Jocals688 has already submitted to the agency’s central office its motion for reconsideration on Tuesday (June 9).
Egypto said it’s now up to the commissioners to decide on the case of Jocals6888.
He said the Commission has given Jocals688 five days from the serving of the cease and desist order to hand in its motion.
The order, dated June 3, was served at the Jocals688 branch office at Barangay Macasandig, this city, located just a few meters from the SEC office, on Thursday (June 4).
The networking company’s principal office is located at Barangay Madasigon, Molave, Zamboanga del Sur. Its certificate of incorporation, bearing no. CS201965099, was issued on Oct. 9, 2019.
The company sells Jocals Gluta Glow Powdered Drink Mix, Jocals Green Coffee, and Jocals Vitamin C.
“[Jocals688] has five days to submit a motion to lift the cease and desist order, to answer the allegations,” Egypto said in an interview Tuesday.
He said the motion would give Jocals688 the chance to explain its side on the allegation that prompted SEC to issue the order.
Egypto said the cease and desist order was issued after the SEC found out that Jocals688 is engaged in the “sale and/or offering of security of securities in the form of investment contracts without prior registration and the corresponding permit.”
He said that in a certificate of incorporation issued to JOCALS688 provides that the corporation “shall not solicit, accept or take investments/ placements from the public neither shall it issue investment contracts.”
“The Enforcement and Investor Protection Department (EIPD), however, found that JOCALS688 enticed members to deposit a minimum of P10,000 to earn P13,000 after a month. Alternatively, one could become a member by purchasing a package of products for P3,800.00,” Egypto said.
Members, he said, could earn by selling the products. “However, they could supposedly receive bigger returns by simply recruiting more people into the scheme.”
In the course of its investigation, SEC also found out that two of the company’s incorporators allegedly have invalid taxpayers identification numbers (TINs).
“That’s exactly a ground for revocation for fraud in the procurement of the certificate of incorporation. That’s fraud,” Egypto said, referring to the invalid TINs of two of Jocal688’s incorporators.
As of this posting, the Jocals688 has yet to issue a statement regarding the controversy.
In a previous interview, however, Joshua Calderon, Jocals688 chief executive officer, has maintained that his business is legal and that the company is not engaged in investment taking activities.
“We are not into investment. What you earn is incentive when you buy products from us,” Calderon said in a recent interview.
He said Jocals688 is unfazed with the accusation thrown against the company as it is involved in the humanitarian efforts primarily in the donation of food packs and other assistance to the frontliners amid the coronavirus pandemic.
