Forsage SEC Warning in the Philippines
On July 1st, 2020, the SEC in the Philippines issued a fraud warning against Forsage.
The SEC warned the public against placing money in the Forsage scheme.
See the original Forsage Ponzi Scam Review
Forsage SEC Advisory
FORSAGE is NOT REGISTERED with the Commission and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC). FORSAGE is also NOT REGISTERED either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.
A maximum fine of P5 million ($100,000 usd) or imprisonment of 21 years or both await those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes, for violation of Republic Act No. 8799, or The Securities Regulation Code Securities Regulation Code, among others.
Forsage touts a Crowdfunding International Platform or a Smart Contract Crypto Earning Program based on the Ethereum (ETH) blockchain technology, which supposedly provides long-term active and passive income to investors through a crowdfunding referral system.
As posted online, Forsage offers two commission payout systems or compensation plans called Forsage X3 and Forsage X4 for a minimum investment of 0.05 ETH, or at least P600, and a maximum of 51.2 ETH, or almost P600,000. Each program has 12 income slots that the investor may activate.
Under Forsage X3, for instance, an investor needs three referrals to complete the cycle. The first two referrals’ membership fees shall be paid to the referring member account while the third referral’s membership fee shall be considered as a “re-entry fee” and awarded to the referring member’s sponsor or upline.
Basically, the active income generated from the compensation plans depends on the number of referrals and/or membership fees gathered while passive income acquired through spillovers.
Accordingly, Forsage’s so-called smart contract is synonymous to an investment contract, where there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
An investment contract is a security and, therefore, must be duly registered with and approved by the SEC before it could be sold or offered for sale to the public, pursuant to Section 8 of The Securities Regulation Code.
Aside from lacking the necessary licenses, Forsage’s compensation plan resembles a Ponzi scheme, where investors are paid using the contribution of new investors, according to the SEC.
Read the official Forsage SEC warning here: https://www.sec.gov.ph/wp-content/uploads/2020/07/2020PressRelease_SEC-warns-against-Forsage-other-schemes.pdf
Forsage Cease and Desist
SEC ISSUES CEASE AND DESIST ORDER AGAINST FORSAGE – September 30th , 2020
Official SEC Cease and Desist link here: https://www.sec.gov.ph/pr-2020/sec-issues-cease-and-desist-order-against-forsage/