Crowd1 permanently banned in Philippines, appeal denied
Crowd1’s appeal to the Philippine SEC has been denied.
Effective immediately, Crowd1 is permanently banned in the Philippines.
Crowd1 was issued the cease and desist in April. The company’s motion was filed in late June.
On July 2nd the motion to lift was denied. The SEC claims
Crowd1 failed to present evidence in support of its claim that it is not engaged in the sale and/or offer for sale of securities in the form of investment contracts.
In its defense, Crowd1 had argued
the educational packages it was selling to the public was allowed since its objective is to educate the affiliates of the organization on possible wealth to be gained from marketing products and services.
The SEC didn’t buy it.
Continued promotion of Crowd1 in the Philippines runs the risk of a 5 million PHP (~$415,000 USD) fine, or a twenty-one year prison sentence.