PH SEC Warns Public About Unauthorized Investment Firm "Integrated Digital Success"

In a recent advisory, the Philippines' Securities and Exchange Commission (SEC) issued a stern warning to the public regarding an unauthorized entity known as “Integrated Digital Success” or IDSPH.COM. The commission has made it explicitly clear that this entity is not authorized to solicit investments from the public.

The warning comes in response to information gathered by the SEC, indicating that Chelsea Mirando, the identified CEO and Founder of Integrated Digital Success (IDSPH.COM), has been actively soliciting investments from the public. These investments are purportedly managed by professional traders and asset managers, creating an aura of legitimacy.

Integrated Digital Success has been employing various online channels, including websites, social media, and the internet, to entice the public to invest in two distinct programs: the Starter Plan and the Elite Plan. These programs offer enticing schemes that promise substantial returns on investment. The SEC has expressed grave concern about the investment offering, as it violates several sections of the Securities Regulation Code (SRC) and the Financial Products and Services Consumer Protection Act.

Investors are lured into committing sums ranging from ₱500 to ₱500,000, with promises of guaranteed profits ranging from 20% to 50% within just 7 and 15 days, respectively. This approach squarely contradicts the regulations outlined in the SRC and the Consumer Protection Act.

The SEC emphasizes that these investments essentially constitute a form of “investment contract,” which is considered a security. Securities must be registered with the Philippine Securities Commission before they may be marketed to the general public, according to Philippine law. Furthermore, every organization or agent participating in the sale of securities to the general public must be registered and licensed.

A thorough examination of the SEC's database reveals that Integrated Digital Success is neither registered as a corporation nor a partnership. Consequently, it operates without the necessary license or authority to solicit, accept, or manage investments from the public, let alone issue investment contracts.

The SEC has also raised concerns that Integrated Digital Success's scheme bears the hallmarks of a “Ponzi Scheme,” where funds from new investors are used to pay “fake profits” to previous investors. This scheme ultimately benefits the top recruiters and early investors at the expense of later participants. Such practices are both fraudulent and unsustainable.

The commission explicitly declares that securities marketed via a “Ponzi Scheme” are not registrable, and it will not give licenses to organizations engaging in such misleading tactics. The SEC warns that heavy penalties would be applied for breaches of the Securities Regulation Code, the Revised Corporation Code of the Philippines, the Financial Products and Services Consumer Protection Act, and other relevant laws and regulations.

Individuals acting as salesmen, brokers, dealers, or agents for Integrated Digital Success, particularly Chelsea Mirando and Nikolas Mariano, may face criminal liability and significant penalties under the law. These penalties can amount to up to Five Million pesos (Php5,000,000.00) or a maximum of Twenty-one (21) years in prison, or both, in accordance with Section 73 of the Securities Regulation Code.

In light of these developments, the SEC strongly advises the public not to invest in any scheme offered by Integrated Digital Success or any similar entities. Individuals are urged to exercise extreme caution when approached by individuals or groups soliciting investments on behalf of Integrated Digital Success or entities associated with it.

The SEC's primary goal continues to be investor protection, and it will continue to take strong action against those who attempt to exploit unwary persons via unlawful investment schemes. To help protect themselves and others from possible financial loss, the public is advised to report any suspicious actions to the SEC.