1 May 2019

SEC UNIT CANCELS YEHEEY’S REGISTRATION

FOR ENGAGING IN PAID-TO-CLICK SCAM
The Securities and Exchange Commission’s (SEC) Enforcement and Investor
Protection Department (EIPD) has revoked the certificate of incorporation of Yeheey
iTraffic System, Inc.

The EIPD issued the order of revocation against YEHEEY on April 4 on the ground of
serious misrepresentation of what the corporation can do or is doing to the great
prejudice of or damage to the general public.

Based on information gathered and confirmed by the EIPD, the corporation enticed
members of the public to register as “premium subscribers” by paying P1,000 and to
recruit more members in exchange for high returns.

YEHEEY then offered various ways for members to earn points and money. For
instance, a member could earn 1,200 points by simply logging in and out four times
daily for six days and $2 for every new member recruited.

The EIPD noted that such a scheme constitutes a public offering of securities, in the
form of investment contracts, and requires a secondary license from the SEC,
pursuant to Sections 8 and 12 of the Securities Regulation Code.

Separate certifications from the Commission’s Markets and Securities Regulation

Department, Corporate Governance and Finance Department, and Company
Registration Monitoring Department showed YEHEEY neither obtained nor sought a
permit to offer securities.

Besides, selling or offering for sale or distribution of securities in the Philippines was
beyond the powers that YEHEEY could have exercised under its articles of
incorporation.
“Considering that nowhere it is stated in the primary purpose that YEHEEY is
authorized to engage in the selling or offering for sale of securities to the public, the
activity of YEHEEY of selling or offering for sale of investments is considered an ultra
vires act and therefore constitute serious misrepresentation,” the EIPD noted.

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Office of the Commission Secretary
S-309, 3F PICC Secretariat Building
Philippine International Convention Center (PICC) Complex
Pasay City
8-888-8141 ; 8-818-5478
In addition, the EIPD found that YEHEEY engaged in a Ponzi scheme, an investment
program that offers impossibly high returns and pays these returns to early investors
out of the capital contributed by later investors. This is prohibited under Section 26 of
the Securities Regulation Code.

The EIPD noted it received a categorical confirmation from the representatives of

YEHEEY, during a conference in August 2018, that 95% of membership fees collected
from incoming members were given to old members to effect the different ways its
members could earn money.
Under Section 6 of Presidential Decree 902-A, or the SEC Reorganization Act, the
Commission can suspend, or revoke, after proper notice and hearing, the franchise or
certificate of registration or corporations, partnerships or associations, on the ground
of serious misrepresentation as to what the corporation can do or is doing to the great
prejudice of or damage to the general public.

The EIPD earlier issued an advisory against YEHEEY in August 2018, following
reports from the public that individuals or groups representing the corporation were
enticing the public to invest in the entity online or through the internet.
In the advisory, the EIPD also reiterated its warning about the proliferation of
investment scams conducted by online-based advertising companies through paid-to-
click programs.

For more information, the full text of the Order of Revocation can be accessed on the
SEC website.

END

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Office of the Commission Secretary
S-309, 3F PICC Secretariat Building
Philippine International Convention Center (PICC) Complex
Pasay City
8-888-8141 ; 8-818-5478