Forsage Scam SEC Warning
The Securities and Exchange Commission Philippines has issued a SEC ADVISORY warning to the Forsage Scam on June 30th, 2020.
Based on numerous reports and information gathered by the Commission, the entity operating under the name FORSAGE, headed by LADO OKHOTNIKOV, is found to be engaged in investment-taking activities in the Philippines which is NOT AUTHORIZED by the Commission.
Forsage is an unsustainable cash gifting pyramid scheme using a smart contract on the Ethereum blockchain that relies solely on recruitment for ROI.
Forsage SEC Advisory
Basically, the active income generated from the foregoing compensation plans depends on the number of referrals and/or membership fees gathered while passive income is acquired through spillovers. Hence, the more people that will be referred to FORSAGE’s system, the more likely that its members will earn income thereto either actively or passively which ultimately defeats its claim of sustainability because its whole system depends entirely on the new investors that will be lured in.
Based on the foregoing, FORSAGE’s so-called smart contract partakes of the nature of securities through an investment contract where their investors need not exert any effort other than to invest or place money in its scheme in order to earn profit.
Briefly, an “investment contract” exists when 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 which prominent on FORSAGE’s scheme.
Therefore, FORSAGE must be duly registered with the Commission and that any person or entity intending to offer and sell its investment contract are required to secure the necessary registration and/or license from the Commission as well.
However, per our record, 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.
Likewise, its name DOES NOT APPEAR among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas (BSP) in accordance with the GUIDELINES FOR VIRTUAL CURRENCY EXCHANGES (BSP CIRCULAR NO. 944) which requires all entities engaged in Virtual Currencies in the Philippines to obtain a Certificate of Registration to operate as remittance and transfer company pursuant to the BSP rules and regulations.
The public is again reminded that investing in such an unregulated entity lacks investor protection because it is not covered by prudential and market conduct requirements applicable to licensed and authorized operations.
Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation enforced by the Commission.
In the same manner, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public similar to CHRISTOPHER DOROLIAT and the operators of the FORSAGE PH and THINK WISE CHANNEL, may incur criminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be assessed correspondingly.
Apart thereof, the Bayanihan to Heal as One Act (Republic Act No. 11469) also punishes those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts during the term of its effectivity.
Again, it must be noted that the above laws are not aimed to hinder or pose significant risk to businesses and cryptocurrency projects but are intended for the protection of both the registered entities and the investing public from any anomalies and/or irregularities which tend to result from any unlawful or unauthorized operations.
Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing FORSAGE, please send your report to the EIPD at firstname.lastname@example.org.
You can read the full 4 page Forsage SEC advisory here: http://www.sec.gov.ph/wp-content/uploads/2020/06/2020Advisory_FORSAGE.pdf
Forsage is an illegal gifting matrix cycler pyramid scheme that uses the Ethereum cryptocurrency. It is not some new innovative crypto project that is saving the world from poverty though “crowdfunding”. Matrix cycler programs have been around for years and years and they always fail. Its simple math that it will eventually stop paying.
Just because it’s on the blockchain with a smart contract, does not mean it is legit, Forsage is still a scam.
Commission junkee marketers have to be careful with their deceptive marketing tactics, using words like passive income, spillover, crowdfunding as its very misleading.
To buy all 24 spots in the x3 and x4 matrices , you need to invest almost $50,000 usd worth of Ethereum.
The majority of the profits will be made at the top of the pyramid, from the owners, the owners friends and the big marketers with gullible folowers. Meanwhile, the rest of the people will be left holding the empty bag and receive little to no payout and lose their money.
Don’t be gullible, and do not invest in the Forsage scam!