ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT

SEC ADVISORY
Based on numerous reports and information gathered by the Commission, theentity operating under the name SEVEN STAG INTERNATIONAL OPC, headed by
VIERNON P. SUMINIG, is found to be engaged in investment-taking activities in thePhilippines which is NOT AUTHORIZED by the Commission. To show:

SEVEN STAG INTERNATIONAL OPC is enticing the public to invest as
shareholder of their company, with a promise of daily encashment with amounts
varying from the “Levels of Shareholding” paid by the investor. According to thecompany, the promised income are to be generated from online sabong, fish farm andcrypto trading activities. As advertised:As posted online, SEVEN STAG INTERNATIONAL OPC is apparently utilizing
the multi-level marketing scheme in order to gain more profit from the public which isparticularly described as follows:a. Newbie Shareholder - An investor pays a minimum amount of Five
Hundred Sixty Pesos (Php560.00) with a promise of 15% earnings fromevery direct affiliate and from the 2nd to 5th receives a daily reward of FortyFour Pesos (Php 44.00) from Indirect Affiliate;b. Apprentice Shareholder- An investor pays a minimum amount of Five
thousand Six Hundred Pesos (Php 5,600.00) with a promise of 20%
earnings from every direct affiliate and receives Four Hundred Forty
Pesos (Php 440.00) as daily rewards from every indirect affiliate from 2 nd
up to 5th levels;c. Manager Shareholder- An investor pays a minimum amount of Fifty-Six
Thousand Pesos (Php 56,000.00) with a promise of 25% earnings forevery direct affiliate and infinite levels for indirect affiliates with a daily
reward of Four Thousand Four Hundred Pesos (Php 4,400.00); andd. Senior Shareholder- an investor pays Five Hundred Sixty ThousandPesos (Php 560,000.00) with a promise of 30% earnings for every direct
affiliate and infinite levels for indirect affiliates with a daily reward of Fortyfour thousand Pesos (Php 44,000.00).

Aside from earnings explained above, the managers and senior managers will
receive an additional 30% and 70 % from the “Stag Pool Shares”, respectively. As
Illustrated:

Aside from referral bonuses, SEVEN STAG INTERNATIONAL OPC promises
a DAILY PASSIVE INCOME of Forty Four Pesos (Php44.00) for the minimum
investment Php560.00 and Forty Four Thousand Pesos (Php44,000.00) for a
Php560,000.00 investment.
The income generated by the company does not appear to come fromlegitimate business sources but solely from the “Levels of Shareholdings” being paidby its current investors/shareholders and by the newly recruited members. These false
representations of lucrative return of investment within a short period of time fromapparently legitimate sources effectively lures the public to invest their hard-earned
money to their company. The operations of this entity is a “Ponzi Scheme,” aninvestment fraud that involves the payment of purported returns to existing investors
from funds contributed by the new investors.
Applying the Howey Test as explained in the case of Power Homes Unlimited
vs. SEC (G.R. No. 164182, February 26, 2008), SEVEN STAG INTERNATIONAL
OPC’s scheme being offered to the public, partakes of the nature of securities in theform of an investment contract which is defined as an investment or placement ofmoney in a common enterprise with a reasonable expectation of profits to be derived
from the efforts of others. Thus, the Securities Regulation Code (SRC) requires thatthese securities are duly registered and that the concerned corporation and/or itsagents have appropriate registration and/or license to sell such securities to the publicpursuant to Section 8 and 28 of the SRC.
Although SEVEN STAG INTERNATIONAL OPC is registered with theCommission as a corporation, IT IS NOT AUTHORIZED to solicit
investment/placements from the public nor to issue investment contracts andother forms of securities since it has not secured prior registration and/or licensefrom the Commission as prescribed under Sec. 8 and 28 of the Securities
Regulation Code.
Further, SEVEN STAG INTERNATIONAL OPC’s investment-solicitation
activities appear to be contrary to and unrelated to its declared primary purpose ofengaging in the business of manufacturing, trading, direct selling, marketing, buy andsell of gadgets such as cellphone, tablet, prepaid sim card, computer peripherals andhealth care products, home care products, beauty/personal product care products,
foods, and beverages and to provide services and benefits to its loyal product users
and distributors,
Therefore, SEVEN STAG INTERNATIONAL OPC’s lack of prior registration
pertaining to its securities with the Commission make its activities illegal, fraudulent
and injurious to the investing public.
The issuance of a Certificate of Incorporation only grants the said entity juridical
personality but does not constitute an authority or license for the corporation to engage
in activities such as solicitation of investments, issuance of investments contracts,
offering and sale of investment contracts that require a secondary license.
Also, the offering and selling of securities in the form of investment contracts
using the “Ponzi Scheme” which is fraudulent and unsustainable, is NOT aregistrable security. The Commission will not issue a License to Sell Securities to thePublic to persons or entities that are engaged in this business or scheme.
Hence, the public is strongly advised NOT TO INVEST or STOP INVESTING
in any scheme offered by SEVEN STAG INETRNATIONAL OPC or such other entities
similarly engaged in investment contracts without prior registration from theCommission.
Accordingly, the Commission warns all unscrupulous individuals and/or entities
that strict penalties are imposed for violations of the Securities Regulation Code,the Revised Corporation Code, and such other rules and regulation enforced bythe Commission.
Those who act as salesmen, brokers, dealers, agents or representatives ofSEVEN STAG INTERNATIONAL OPC, including its sole stockholder-directorpresident, VIERNON P. SUMINIG, nominee EDWARD B. DELA CRUZ, alternate
nominee, MARYGRACE A. BONIFACIO, the operators of its Facebook Page orenablers and influencers of similar social media, in selling or convincing people toinvest in their investment scheme offered including solicitations and recruitment
through the internet may likewise be criminally prosecuted and penalized with amaximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one(21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC.
In the same manner, those who invite or recruit others to join or invest in such
venture or offer investment contracts or securities to the public similar to and theoperators of the SEVEN STAG INTERNATIONAL OPC may incur criminally liability,
or otherwise be sanctioned or penalized accordingly as held by the Supreme Court inthe case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
The names of all those involved will also be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penalties and/or taxes be assessed
correspondingly.
Should you have any information regarding any investment solicitation activity
by any individual or group of individuals representing SEVEN STAGINTERNATIONAL OPC, please send your report to the EIPD at epd@sec.gov.ph.
For the guidance of the public.
Pasay City, 4 May 2021.