Emgoldex operators convicted for illegal investment

The incorporators of Prosperous Infinite Holdings Phils. Corp. (PIHPC), also known as the operators of EMGOLDEX PHILIPPINES, have been convicted for unlawfully soliciting investments from the public without the necessary license.

In an October decision, Branch 157 of the Pasig City Regional Trial Court found PIHPC incorporator and director John Rafael Calicdan, along with corporate secretary Ryan Manuit, guilty beyond a reasonable doubt of violating the Securities Regulation Code (SRC).

Both Manuit and Calicdan were sentenced to up to 10 years of imprisonment and ordered to pay a fine of P500,000 each.

PIHPC's primary purpose included the investment, purchase, or acquisition of personal property such as stocks, bonds, debentures, notes, and other securities. 

However, the company’s sale of securities to the public lacked a duly filed and approved registration statement with the SEC.

“Although the Articles of Incorporation of PIPHC bore the signatures of both accused Calicdan and Manuit, they denied being the incorporators of the company and merely averred that they signed the same without understanding its consequences, which is highly unlikely given their participation in the operations of the corporation after its incorporation,” the court said.

“Thus, there can be no doubt that both accused participated in recruiting investors and in the activities of the PIPHC when it dealt with securities without any registration or license from the SEC,” it added. 

The case arose from the Securities and Exchange Commission’s (SEC) investigation of Emgoldex Philippines, which was discovered to be engaging in online investment solicitation through unregistered investment contracts. 

Under its scheme, individuals were encouraged to invest at least P36,500 in a gold investment program, with the promise of earning up to P182,500.

Investors were required to recruit at least two others to make similar investments to complete a hierarchical "exit table" consisting of 15 slots.

The SEC subsequently issued a cease and desist order against Emgoldex. 

Despite this, Manuit and Calicdan, identified as operators, continued their activities under new business names, first as Global Intergold and later as PIHPC, persisting in illegal investment solicitation. 

Like its predecessors, Global Intergold was also unregistered with the SEC and lacked a license to sell securities to the public.