Another ponzi falls after SEC operations

The Securities and Exchange Commission, or SEC, has revoked the corporate registration of Infinity8Networks Digital Services OPC and imposed a P1-million administrative fine on the company for illegally soliciting investments from the public.

The SEC Enforcement and Investor Protection Department, or EIPD, found that Infinity8Networks violated Section 44 of Republic Act 11232, or the Revised Corporation Code of the Philippines, or RCC.

The company also violated Sections 8.1, 26, and 29.1 of Republic Act 8799, or the Securities Regulation Code, or SRC, and Section 6(i)(2) of Presidential Decree, or PD, 902-A, or the SEC Reorganization Act.

Under the RCC, a corporation may not possess or exercise corporate powers other than those conferred by law or by its articles of incorporation.

Securities need prior SEC registration

The SRC provides that securities must be registered with the SEC before they can be offered to the public. Entities offering such securities must also secure the necessary license from the Commission.

Under PD 902-A, the SEC may suspend or revoke the certificate of registration of a corporation if it makes a serious misrepresentation of its capabilities or activities that are harmful to the general public.

One-person corporation

Infinity8Networks is registered as a one-person corporation with the SEC, but it has not obtained prior registration or licensing from the Commission for conducting a public offering. 

Its articles of incorporation also expressly prohibit the company from engaging in investment-taking activities.

As a result, the EIPD ordered Infinity8Networks, its incorporator, and its nominees to pay a fine of P1 million, per the administrative penalties provided under the SRC.