Mike Defensor’s First Quadrant in pyramiding scheme — DTI

[CLAVEL3699]

Odell kung kasama nestle cge sama din ako. hehehehe

pero dati kasi ako trabaho sa direct selling company kaya mukhang ayaw ko na.

[mazdamazda]

SEC asks First Quadrant to explain sale of ‘securities’ to public
By Zinnia B. Dela Peña
The Philippine Star 01/13/2005

The Securities and Exchange Commission (SEC) has asked multi-level marketing firm First Quadrant Inc. to explain why it should not be sanctioned for the unauthorized sale of securities to the public.

First Quadrant is owned by the family of businesswoman Rhodora Tactacan-Tumpilan, whose sister is the wife of Department of Environment and Natural Resources Secretary Mike Defensor. It markets classy, stylish, high quality and reasonably priced footwear, ready-to-wear garments, bags, belts, wallets, health products, and fashion accessories.

The SEC has given First Quadrant 10 days to explain its failure to register its securities with the corporate watchdog.

The move followed an SEC investigation on First Quadrant which showed that bulk of the company’s revenues came from the recruitment of members and not from the sale of products.

"It appears that they have been doing more investment solicitation activities than selling their goods to the public. The investment contract being issued by the company to its members should be registered with the SEC since this type of thing falls under the definition of securities," an SEC official said.

The SEC official cited Sec. 8.1 of the Securities Regulation Code which prohibits the sale of securities without prior registration with the Commission.

The official said failure by First Quadrant to register its shares with the SEC would result in the issuance of a cease-and-desist order that would prevent the company from further soliciting investments from the public.

It would be recalled that in 2002, the SEC was swamped with queries about the legality of the operations of First Quadrant. The Commission then referred the case to the Department of Trade and Industry, which is the agency tasked to look into reported pyramiding schemes.

A pyramid scheme is defined under the Consumer Act as a sales device or business scheme where participants invest in the right or chance to get compensation or gifts based on the introduction of more participants in the program.

First Quadrant, which holds office in Greenhills, San Juan,charges an initial investment fee of P8,880 per member. Investors get a percentage or commission from the sales of the products and through the sales of the people recruited as distributors.

Among the benefits that could be availed by members include a P3,000 shopping money for products sold by establishments accredited with First Quadrant; a 50-percent lifetime discount on the products sold by the same establishments; free accident insurance with a face value of P50,000 (amount is doubled if the accident happens abroad) from Prudential Life; and brochures or literature kit about the company.

The come-on is that the more downlines you recruit, the more commissions you are able to earn from the sales of those who come after you.

While multi-level marketing is a legitimate marketing tool, it becomes illegal when the products peddled have no value and were obviously used as a ploy to defraud consumers.

Organized on Jan. 8, 2002, First Quadrant has its main offices in Manila, Cebu and Davao, plus over 17 authorized business centers all over the Philippines. On its first year of operations, the company earned the 2002 National Consumers Choice award as the Top Multi-Level Marketing Company of the Year.

this is interesting...

[qman]

The move followed an SEC investigation on First Quadrant which showed that bulk of the company’s revenues came from the recruitment of members and not from the sale of products.

totoo to ang upline ko pilit ng pilit ng mag recruit ako eh dina nga binabanggit na magbenta ako eh..... so far after almost two years 0 and downline 0 rin ang benta ko hehehehe.

[quiksie]

pag pyramid wala ako tiwala. Dapat sautin pa din ni jamby yun mga dati nilang negosyo. Hanggang ngayon meron pa sila sa cement

[RedHorse]

OT ano produkto nyo kasama ba nestle doon hehehe downline mo ko

fyi: nestle ceo, now dti secretary.... bad bad bad, if nestle products are now into mlm, with or without consent, nestle must do something about it

[RedHorse]

mag stocks na lang kayo, buy nyo na mining issues hanggang mura pa

[pepengtom]

paktay tayo jan....
kiper pagalawin mo na ung sakin...

[kingkaboodles]

mga kasmahan ko din dito nag-join sa FQ.. nagkaroon ksi nang hype, ayun sunod sa anod sila. ang pakonswelo na lang nilang sinasaibi is the gift cert * nabawi naman daw ung ininvest nila.

maganda lang ang MLM kung may grocery store ka, or nag-ttyangge, etc. para ma gamit ung benefits nung discounts.

sana nagtayo na lang sila nang small cooperative sa mga rural areas.

[van_wilder]

aha! kaya pala nag-expose siya kay jamby madrigal para mawala sa kanya yun attention... walang kwentang expose, tama ba naman sabihin na illegal money ang yaman ng mga madrigal... eh spanish period pa lang mayaman na sila eh...

[kiper]

psst odell, baka sakaling ma-convert kita, anti-mlm crusader kasi ako... he he he

good luck na lang kung maconvert mo pa yan..milyones na kinita nyan sa networking.