Is One Lightning Corporation a scam?

By Randell Tiongson on March 12th, 2015

Yes, it is a scam.

In fact, the Securities and Exchange Commission (SEC) has issued a warning regarding the scaminvestment taking activities of this company and its affiliates. According to the SEC, no secondary license has been issued to One Lightning Corporation. It is not supposed to be soliciting investments or selling investment products to anyone in the Philippines.

The SEC advisory includes a warning to those who intend to participate in the modus operandi of One Lightning Corporation. Individuals who try to convince others to be part of the activities of the said company will risk getting prosecuted for the violation of the Securities Regulation Code. Those who will continue recruiting more members or investors will be charged accordingly.

 

SEC Investigation

The Securities and Exchange Commission conducted further investigation on One Lightning because it is a SEC-registered company. The SEC cannot simply release a statement similar to the one issued for Emgoldex Philippines, which is not even registered with the Commission.

The SEC investigation found that One Lightning Corporation invites “investors” to its cosmetics and health care product line. These prospective investors are promised high returns on their investments in a scheme marketed as a “revolutionary compensation plan.” In this scheme, investors will get 70% of the company’s profits.

Just like other companies that attract investors through referrals or recruitment, One Lightning Corporation also dangles recruitment commissions or bonuses called “referral award” and “maturity award,” both of which are pecuniary in nature.

The referral award is given to someone who successfully recruits a new investor, while the maturity award is given to someone whose recruits have recruited other investors. The referal award is around 5% of the investment paid in while the maturity award is around 2%.

In an interview with ANC, Gerard Lukban, commission secretary of the SEC, said that it is not enough that a company is registered in the Philippines for its activities to be considered legal or legitimate. In the case of One Lightning, the act of selling of investment contracts to the public requires SEC’s scrutiny of the company’s registration statement and prospectus of what is being offered.

The SEC referred to One Lightning Corporation’s activities as a pyramiding operation.

 

Why SEC considers One Lightning a scam

According to SEC secretary Gerard Lukban, there were two violations committed by One Lightning: (1) the questionable investment contracts being offered, and (2) the company’s lack of a licensed salesman to sell the investment contracts. As the SEC advisory stated, the company does not have the permission to publicly offer securities and solicit investments.

 

Avoiding Similar Scams

Financial advice websites as well as government authorities will tell you a number of common factors that indicate whether or not an investment or “grow your money” company is fraudulent. They include the following:

  • Lack of government licensing (registration) or recognition by the appropriate government agencies
  • Lack of legitimate products or actual revenue-generating business operations
  • Too good to be true (guaranteed high returns)
  • Difficult to find official information about the company
  • Focus is on the recruitment of “investors”

It’s important to note, however, that fraudulent companies at present have already evolved. Some are now registered with the government and also have products to sell. That’s why emphasis should be placed on “appropriate registration or licensing” and “legitimate products.”

As the SEC secretary mentioned, it’s not enough for a company to be registered and that the products being offered should also be examined for the proper licensing or permission to be publicly offered. In the case of One Lightning, it is SEC-registered, but it does not have the necessary permission to offer investment products.

It’s important to be very cautious with all financial decisions you make, especially when dealing with investment opportunities that are mostly being marketed online. Skepticism is advised and encouraged. This need for prudent financial decision-making, however, is not limited to investments. It also applies to making decisions on loans and credit cards.

Fortunately, there are transparency and comparison services like MoneyMax that can help you in differentiating the legitimate offers from the fraudulent ones, as well as the good from the better. They can facilitate a more informed scrutiny of your options. Comparison sites curate a great deal of relevant information and resources that make it easier to see the pros and cons of the choices you are considering.

The Internet is your friend. Make good use of it to research and compare, so you can be at an advantage in your financial decision making concerns. Don’t fall for a scam like One Lightning Corporation.

 

Sources:

http://www.sec.gov.ph/docs_home/2015Advisory_One_Lightning_Corp.pdf

http://www.abs-cbnnews.com/business/03/11/15/why-sec-issued-warning-vs-one-lightning-corp

http://business.inquirer.net/188284/sec-warns-investors-against-one-lightning

http://www.forbes.com/pictures/mjf45egim/pay-attention-2/

 

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15 thoughts on “Is One Lightning Corporation a scam?”

  • Tama lang ang ginawa ng SEC kasi rapid growth ang OLC ngayon at bakit ganon kadali sila mag binta ng investment hindi naman sila licensed distributors. Ang mga nagbibinta ng ganyang klaseng business ay nagpapakahirap just to pass the exam for licensing. Samanatalang sila ang bilis, isang violation po ang ginawa ni OLC and they should be punished in accordance with the Law that we have.

  • the said details about one lightning is a scam does not existed in the terms nor there are no investment contract issued by the company? if you were a member of this company you should know what is the real system of it

  • Ang pinakamagandang gawin siguro ng SEC sa mga ganitong operation ay magtalaga sila ng isang Marketing Team sa kanilang opisina para suriin lahat ng nag a-apply ng SEC LICENSE. Bago mag issue ng SEC kailangan munang i explain o kaya i demo ng isang applicant Company ang kanyang marketing plan sa harap ng SEC Marketing Team. Kung ang nasabing marketing plan ay hindi karapat dapat na maging ligitimate ay huwag ng bigyan ng permit at para hindi na rin magastusan ang nasabing Companya. Ang SEC LICENSE ay ibibigay lamang kung ang marketing plan na ipapakita ng isang Companya ay hindi magiging SCAM. Sa paraang ito, magiging patas ang bawat panig, kadalasan kasi madami na ang nagiging biktima bago pa ito mapansin ng Authorities.

    Papaano naman kung ang isang Comapany ay gumastos na ng malaki sa kanilang office, marketing materials, website etc…at biglang may nagsumbong na “SCAM daw” syempre apektado kaagad ang isang Companya, at pag napatunayan naman na hindi ito SCAM, papaano pa makakabangon ang naturang Companya kung itoy sira na…Para maiwasan ito at maging patas sa lahat,,,highly recommended Maglagay ng Marketing Team sa SEC. iyong hindi basta Marketer kundi marunong sa online at offline marketing. Hindi lahat ng products ay nahahawakan para ito ay magiging tangible. Gaya ng mga E-books or digital products, information, online training, downloadable products at mga services.

  • Patay kayo, vindicated na ang ONE Lightning, clear na sya sa SEC, na technical lng pla sya sa mga terminologies. The bad news is may sumunod na mga company na maeevaluate at ONE Lightning Corporation lang nkaligtas. Haha. We should not judge even th Emgoldex thing. This company’s compensation plan and profit sharing is unique bro. Haha

  • hello po kinoconvince po ako to join OLC dito sa Canada. Paano ko malaman na OLC ay may licence na mag recruite dito?

  • May cease and desist order na ang OLC sa Pilipinas. Illegal din ang activities nila sa Canada so be careful.

  • HPI hyper program international
    Questionable po ang company
    (Within the span of more than 1 yr) may iba’t ibang branches ndaw cla nationwide… hmm?? At meron din daw clng branches international

    May advisory sila sa SEC pero bkt patuloy prin ang recruitment nila. Ang sinasbi po ng representative ng hpi wag daw maniwala na SCAM daw sila. Gngwan ndw nila ng paraan nun SEC. Kinkalban lng daw cla ng SEC

    Contradicting din po nun terms of agreement (…na nasa likod ng knilang reciept na hndi approved ng bir..) nila pti po nun sinasbi nila sa seminar.
    Ang sbi sa terms ” distributor” buy/sell ng knilang products.
    pero sbi nila sa seminar “investor” daw kmi khit ndi ndw kmi mag benta or magrecruit. PERO mas maganda daw pg may recruit.

    Wla din clang official reciept ndi ko sure kun registered cla sa bir. Pti nun product nilang gold mask wlang bfad approved

    Think twice before investing. Stop ndn sa pagrecruit at baka iss kmi sa mkasuhan sa SEC

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Is One Lightning Corporation a scam?