SEC move to refer pyramiding cases to DTI welcomed

Powerhomes Unlimited Corp. yesterday commended the Securities and Exchange Commission (SEC) for turning over to the Department of Trade and Industry (DTI) the inquiry into the operations of suspected pyramiding firms.

Powerhomes is one of 26 companies in the SEC list of suspected firms engaged in the so-called pyramiding scheme. It is a two-year old all-Filipino real estate network marketing outfit using an innovative "socialized power pairing" marketing system.

The firm says it has over 100,000 marketing sales association (MSAs) strategically spread in many key cities nationwide and in 10 foreign capitals.

In turning over to the DTI the inquiry into the operations of the 26 companies, SEC said the move is logical since DTI is the proper regulatory agency that has jurisdiction over the issues being inquired into.

Powerhomes corporate communications director Benjie Lagman said they are pleased with the SEC decision which reflects its final adherence to the rule of law regarding the principle of issue jurisdiction.

Lagman also expressed confidence DTI will handle and resolve the issue objectively and professionally. Until recently, Powerhomes had a running legal war with SEC in the Court of Appeals.

"I would like to clarify that SEC did not file a case against us, it was the other way around. Powerhomes filed the case, obtained a temporary restraining order and later an injunction against the SEC," he explained.

Lagman said he is certain Powerhomes will eventually be cleared and be proven to be a legitimate marketing enterprise that offers real estate products and services and conducts its business in consonance with its core values reprented by the acronym SHIFT-sincerity in service, honesty and humility, integrity, fairness and teamwork.