Aquitek Food Trading Business -
Warnung SEC Philippines - 2020-May-11
ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT
SEC ADVISORY
The Commission has received information that AQUITEK FOOD TRADING
(AQUITEK) is engaged in UNAUTHORIZED investment-taking activities in the
Philippines.
AQUITEK claims that it is a company that manufactures and specializes in all
natural healthy products using highly sophisticated manufacturing technology. They
also claim that they are the makers of Maxifit Slimming Coffee with Chia Seeds and
Maxijuice with Purple Corn and Collagen. The Chairman and CEO of AQUITEK is
Mr. ANGELITO CAMACHO QUINTANA and its office is located at Km 31 Phoenix A
Gas Station Vicinity, San Pedro, Laguna.
Based on information gathered by the Commission, the entry packages for
the marketing plan of AQUITEK are as follows:
1. PAYLITE PACKAGE worth Php 599.00
>includes a box of either the Maxifit Slimming Coffee with Chia Seeds or the
Maxijuice with Purple Corn and Collage;
> entitled to Php 300 per matching bonus;
>can earn up to Php 2,700 daily (maximum of 3 accounts); and
2. PREMIUM PACKAGE worth Php 2,000.00
>includes three boxes of either the Maxifit Slimming Coffee with Chia Seeds
or the Maxijuice with Purple Corn and Collage;
>entitled to Php 1,000.00 per matching bonus;
>can earn up to Php 9,000.00 daily (maximum of 3 accounts).
As posted online, AQUITEK offers five ways to earn income, namely:
1.Direct Selling- Recruited investors will get 20% to 50% profit by selling
AQUITEK products based on the package chosen because members are given up to
50% discount of the products;
2. Pairing Bonus- Paylite (Php 599.00 package) recruited investors get Php
300.00 for every sales match left and right while Premium (P2,000.00 package)
recruited investors get Php 1,000.00 for every sales match left and right;
3. Unilevel Bonus- the recruited investors earn points value on every repeat
orders;
4. Leadership Bonus; and
5. Lifestyle Incentives- redeeming of points based on the 5th pair points.
In addition, AQUITEK is also giving a direct referral bonus by inviting people
to join in AQUITEK, the recruited investors will receive Php 200.00 for each direct
referral income for each person who joined under the recruited investors’ link. There
is no limit in getting the direct referral bonus.
Accordingly, AQUITEK lures the public to invest in their scheme through
referral system designed to encourage its members to recruit others in order to earn
income instead of selling on the merits of the coffee or juice products. An individual
automatically becomes an investor of AQUITEK upon the purchase of either their
Paylite or Premium Package, after which the investors need not worry about the
marketing of AQUITEK’s products for as long as the investor shall promote
AQUITEK diligently on Facebook.
In the instant case, the scheme of AQUITEK has the characteristics of a
Pyramid scheme. The Pyramiding scheme involves securities because for payment
of a sum of money, often nominal, the investor participates in a recruitment scheme
that promises a stream of profits. The scheme that requires recruitment in a twopronged structure takes the form of a pyramid, one that grows wider at the bottom,
and thrives with the supply of new recruits to the scheme. Here, the recruitment fees
collected from new recruits are used to pay the recruiting commissions to earlier
recruits.
Further, applying the Howey Test, the scheme of AQUITEK involves the
offering and sale of securities in the form of Investment Contracts, to the public
because the investors need not exert any effort other than to invest or place monies
in AQUITEK in order to generate income.
Since this scheme involves the sale of securities to the public, the Securities
Regulation Code (SRC) requires that these securities are duly registered with the
Commission and that the concerned corporation and/or its agents have appropriate
registration and/or license to sell such securities to the public pursuant to Section 8
of the SRC.
Per record of the Commission, AQUITEK is NOT registered with the
Commission as a corporation or partnership nor is it authorized to solicit
investments from the public since it has not secured prior registration and/or
license from the Commission as prescribed under Sections 8 and 28 of the
Securities Regulation Code.
Hence, those who act as salesmen, brokers, dealers or agents or claim to act
as such of AQUITEK in selling or convincing people to invest in the investment
scheme being offered by said entity including solicitations and recruitment through
the internet may be prosecuted and held criminally liable under Section 28 of the
SRC and penalized with a maximum fine of Five Million pesos (Php 5,000,000.00) or
penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of
the SRC.
Also, those who invite or recruit others to join or invest in such venture or
offer investment contracts or securities to the public may incur criminal liability, or
otherwise be sanctioned or penalized accordingly as held by the Supreme Court in
the case of Securities and Exchange Commission vs. Oudine Santos (G.R. No.
195542, 19 March 2014).
Further, the names of all those involved will be reported to the Bureau of
Internal Revenue (BIR) so that the appropriate penalties and/or taxes be
correspondingly assessed.
In addition, under the Bayanihan to Heal as One Act (RA 11469),
individuals or groups participating in cyber incidents that make use or take
advantage of the current (Covid-19) crisis situation to prey on the public through
scams, phishing, fraudulent emails, or other similar acts are punishable with
imprisonment of two (2) months or a fine of not less than Ten thousand pesos (Php
10,000.00) but not more than One million pesos (Php 1,000,000.00) or both.
In view thereof, the public is hereby advised to exercise caution in dealing
with any individuals or group of persons soliciting investments or recruiting investors
for and on behalf of AQUITEK. The public is further advised NOT TO INVEST or
STOP INVESTING in any investment scheme being offered by AQUITEK.
Should you have any information regarding any investment solicitation by any
individuals or group of individuals representing AQUITEK, you may send your report
to the EIPD at epd@sec.gov.ph
For the guidance of the public.
Pasay City. 11 May 2020.
+49 341 9826113 
