The SEC has issued last Jan. 26 a cease-and-desist order (CDO) against Prosperity.com on the premise that it is engaged in the selling of unregistered securities or investment contracts. The company is in the business of selling, hosting and designing websites for individuals, corporations, and other entities.
Barely five months into the business, Prosperity.com. now has an estimated 40 thousand subscribers or website owners who can now qualify to avail themseles of the company’s incentive package upon recruitment of other customers.
But last Feb. 14, the 10th Division of the Court of Appeals issued a 60-day temporary restraining order (TRO) against the SEC, arguing that the CDO would result in the company’s closure if the sale of its life-and-blood – the websites – is prohibited.
Prosperity.com network officer Andrew Castillo said that their business opens up a host of opportunities for everyone willing to work under their reward system, which includes the chance to own real estate like house and lot, golf and club share, condominium units, or brand-new vehicles.
Under the scheme, Prosperity.com offers its subscribers an exclusive 15 megabyte (MB) webspace in exchange for $294 or its peso equivalent. The website will then be the platfom for networking in a multi-level system which rewards the subscriber with dollar commissions and points for every pair of sales down the line.
The company rewards a customer with an initial $46 in commission and a corresponding 46 points for the first pair of new customers recruited. Further down, the commission will be fixed at $74 and the corresponding points, or company subsidy, at 18.
Once it accumulates to 2,700, the point system stops and the customer can have the option to use this privilege to invest in either property or automobiles. No more points will be rewarded for subsequent sales although the commission rate goes up to $92.
Castillo said since the program was offered, 32 subscribers have availed themseles of real estate while another 48 were able to buy brand-new vehicles.
He stressed that so far, all their customers are satisfied with their system, which some quarters suspect was only a variation of the illegal pyramid scheme, and that their legal troubles were initiated by their former associates turned competitors.