The CA’s 11-page decision, promulgated on Dec. 27, 2024, confirmed that NWorld’s operations involved unregistered investment contracts, violating the Securities Regulation Code (SRC). NWorld’s investment packages, ranging from P4,750 to P19,000, promised returns of up to P127,000 per month, alongside bonuses such as discounted rates, referral rewards, and cash earnings through its “XX Cash” program.
The SEC initially issued the order on Feb. 23, 2022, followed by a resolution on July 19, 2022, making the order permanent after rejecting NWorld’s motion to lift it.
According to the SEC, NWorld failed to register its investment contracts, a requirement under Section 8 of the SRC, designed to protect the public from fraudulent schemes.
The appellate court highlighted that the regulation of securities is critical to maintaining confidence in capital markets, making the SEC’s actions against NWorld justifiable.
Further, the CA noted that the SEC observed due process in informing NWorld of the investigation’s findings and allowing the company to file motions to lift the order.
Adding to its regulatory violations, the SEC discovered that NWorld submitted an invalid Tax Identification Number during its incorporation, leading to the revocation of its corporate registration in July 2022.
