SEC cracks whip on alleged ponzis
Section 8 of Republic Act 8799, or the Securities Regulation Code, expressly prohibits the sale or offer to sell and/or distribute securities without the proper secondary license from the SEC
Text size
Section 8 of Republic Act 8799, or the Securities Regulation Code, expressly prohibits the sale or offer to sell and/or distribute securities without the proper secondary license from the SEC
The Securities and Exchange Commission or SEC has ordered a permanent cease and desist order or CDO against Casa Infini Builders and Realty Co. Ltd., Casa Infini Realty Management Co. Ltd., and its affiliated entities.
The industry regulator, in a resolution dated 31 October, affirmed the issuance of the CDO against Casa Infini, effectively denying the company's motion to lift the order.
The commission en banc issued the CDO against Casa Infini on 8 June after the SEC Enforcement and Investor Protection Department or EIPD found the company and its officers as having sold securities, in the form of investment contracts, without the proper secondary license from the SEC.
Casa Infini enticed the public to invest in their alleged real estate projects in Baguio City either as a buyer-investor or partner financier.
Investors were promised a guaranteed income of more than P33,000 per month for 20 months, with the company assuring the public that the investments collected were supposedly financing the real estate properties that it owned, managed and operated.
Housing is probably the biggest issue affecting people the world over.
Malacañang on Monday called for a more thorough investigation into the questioned flood control projects in Taguig…
The defense on Monday backed the move by senator-judges to exclude a prosecution witness who testified on the firearms…
Section 8 of Republic Act 8799, or the Securities Regulation Code, expressly prohibits the sale or offer to sell and/or distribute securities without the proper secondary license from the SEC.
'Not a scam'
In its motion to lift the CDO, Casa Infini argued that the solicitation from investors was not a scam since its project was supported by a license issued by the Department of Human Settlements and Urban Development.
The group also denied being a Ponzi scheme, noting that the referral fee is paid and incurred not by the investments of new partners but by CI Builders itself because of the acknowledged benefit that the program will have for the business.
Further, Casa Infini noted that no damages were being reported by any of the company's partners which, supposedly showcased that the partner financiers did indeed receive the expected returns, proving the authenticity of the promised profits.
BBMI delisted
The Commission En Banc dismissed the arguments of Casa Infini, maintaining that the group was offering securities in the form of investment contracts to the public without the necessary license.
In a separate order, the SEC revoked the corporate registration of Bagong Bansang Maharlika International Inc., or BBMI, for operating as a non-government organization without the necessary licenses, while using the president's name to lure members.
In an order dated 14 November, the SEC EIPD found that BBM International has violated Section 44 of Republic Act 11232, or the Revised Corporation Code, which provides that no corporation shall possess or exercise corporate powers other than those conferred by the RCC or by its articles of incorporation.
BBM International was found to have been collecting membership fees from residents of various local communities, promising to provide food security, free education, free hospitalization, cash assistance, and livelihood to all Filipinos aged one year and above worldwide.
While BBM International is a duly registered corporation with the SEC, activities such as coordinating welfare programs and collecting investments require secondary licenses from the appropriate government agencies.
BBM International is only allowed to exercise powers inherent to its existence as provided in the RCC and those conferred in its AOI. Dealings that are irrelevant to the purposes mentioned in its AOI are considered unauthorized.
