The Securities and Exchange Commission (SEC) has canceled the registration of Superbreakthrough Enterprises Corp, which uses the business name 1UP Time, due to alleged violations of securities laws.
The move comes after NWorld, a company headed by 1UP Time’s president, was found to have run a Ponzi scheme and had its registration canceled in July 2022.
According to the SEC, the two companies share the same address and distribute similar products and product packages, suggesting that 1UP Time is a continuation of NWorld.
Although 1UP Time claims to be a legitimate multi-level marketing (MLM) entity under the jurisdiction of the Department of Trade and Industry, the SEC alleges that the primary motivation for joining the company is the opportunity to earn various bonuses.
The company’s compensation structure is designed to encourage people to buy product packages and recruit other investors, with the promise of ‘unlimited opportunity bonuses.’
The SEC believes that the company is offering investors the opportunity to earn unlimited bonuses, rather than the product itself, which raises concerns about the legitimacy of the operation.
Distributors are promised P2,000 for every recruit, and they also earn P50 for every sub-reseller recruit and P500 for every reseller recruit, as well as a 10% bonus from products sold by their recruits.
The SEC reviewed 1UP Time’s 2022 income statement and found that the company does not have any underlying income to pay for the promised profits to its recruits.