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SEC warns the public against Ads Zens Broker Corporation's Investment Opportunity
27-November-2012


Republic of the Philippines
Department of Finance
Securities and Exchange Commission
SEC Building, EDSA, Greenhills, Mandaluyong City

ENFORCEMENT AND PROSECUTION DEPARTMENT

NOTICE TO THE PUBLIC

The Securities and Exchange Commission has received information that Ads Zens Broker Corporation with SEC Reg. No. CS201122288 is offering investment opportunities to the public by promising a fixed return for every advertisement viewed at their website. Ads Zens Broker Corporation purpose' is to engage in direct marketing and provide and provide on-line marketing and on-line classified ads services. It does not have a secondary license to sell securities.

The public is reminded to be over-cautious or exercise prudence in investing their money in what appears to be a high yield-high risk investment which may turn out to be fraudulent scheme.

Where the scheme involves the sale of securities, please make sure that these securities are registered with the SEC. In this regard, you may inquire with the Corporation and Finance Department of the SEC at telephone numbers 584-61-03 or 584-59-50.

The Commission urges anyone who has knowledge or information about any business transaction involving these securities or investment to report such activity immediately to the Commission so that appropriate measures can be taken.

Enforcement and Prosecution Department
Securities and Exchange Commission
5F SEC Bldg., EDSA Greenhills, Mandaluyong City
(632) 584-7650 or 5840923 loc 224
ced@sec.gov.ph



I think SEC misinterpreted ADSZENS real investment opportunity. Take note of those statements I underlined. SEC thought that ADSZENS is selling securities. That's why SEC informs the public that ADSZENS doesn't have secondary license to sell securities. In other words, ADSZENS is not a registered broker or dealer of securities.

Let me clarify. ADSZENS never sells or deals securities or investments contracts. Aside from selling health products, it also operated an advertising program (paid-to-click advertising) few months ago. An ADSZENS member has the opportunity to earn money from every ad-click. That paid-to-click (PTC) advertising program was proven a scam. No real advertisers in their former PTC and payout to the ad-clickers (members) came mainly from registration or upgrade fees. No real advertising sales. So, ADSZENS was operating a pyramiding scheme because of their fraudulent PTC.

SEC thought that this advertising program or investment opportunity is a security which is wrong.

What is security? The Republic Act No. 8799 otherwise known as "Securities and Regulation Code" defines "securities" as shares, participation or interests in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character. (RA No. 8799 Chapter 1, Section 3.1).

To give you a more specific understanding of "securities", 'RA No. 8799, Chapter 1, Section 3.1' also defines securities as:
  1. Shares of stock, bonds, debentures, notes, evidences of indebtedness, asset-backed securites;
  2. Investment contracts, certificates of interest or participation in a profit sharing agreement, certificates of deposit for a future subscription
  3. Fractional undivided interests in oil, gas, or other mineral rights;
  4. Derivatives like option and warrants;
  5. Certificates of assignments, certificates of participation, trust certificates, voting trust certificates or similar instruments;
  6. Proprietary or non proprietary membership certificates incorporations; and
  7. Other instruments as may in the future be determined by the Commission
Don't hesitate to ask if the investment contract or "securities" is registered in the Securities and Exchange Commission (SEC) and whether the dealer or seller of said "securities" is registered in SEC. It it's not registered, then it's illegal.
Category: Business | Added by: khen | Tags: ads, Against, The, Corporation's, investment, warns, SEC, Zens, broker, Public
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