Three firms charged over fake investment schemes

Public investors defrauded by unlicensed investment schemes are getting relief as the Department of Justice (DOJ) approved the filing of criminal cases against three groups accused of illegally soliciting funds without the required licenses.

Citing separate resolutions, the Securities and Exchange Commission (SEC) said the DOJ found prima facie evidence to indict Eton Phil Non-Specialized Wholesale Trading, SCET Colleens Corp., and the group of casino junket operator Hector Aldwin Liao Pantollana, along with their directors and agents, for violating the Securities Regulation Code (SRC).

The SEC said the groups engaged in investment-taking activities without securing the necessary licenses under Sections 8 and 28 of the SRC, which prohibit the sale of unregistered securities. Violations are punishable by up to P5 million in fines or 21 years in prison, or both.

State prosecutors recommended charges against Eton Trading founders Elton John Malabarbas and Princess Samson Frias, and several agents for offering investment contracts in frozen meat products promising 20 to 50 percent monthly profits on investments of P5,000 to P100,000.

“In this case, respondents publicly offered their investment contracts without securing the necessary licenses or accreditation, thereby operating outside the regulatory framework designed to protect the investing public,” the DOJ resolution read.

The SEC warned the public against Eton Trading in February 2023 and issued a cease and desist order (CDO) in July 2023.

The DOJ also endorsed cases against SCET Colleens directors Shara Jane Chavez, Earn Saguindel, and Edith Francisse Tablante for multiple SRC violations.

The firm allegedly offered unregistered investments with promised returns of five to eight percent per month, or P3,800 to P1.08 million.

“Respondents Chavez, Saguindel and Tablante committed fraud or deceit upon their investors by publicly offering and selling investment contracts without a secondary license or approval from the SEC,” the resolution stated.

The SEC issued a CDO against SCET Colleens in September 2021 and revoked its registration in February 2023.

The DOJ also charged Hector Aldwin Liao Pantollana, Zeus Liao Pantollana, Reymond Lacsamana Galang, Quarry Quieng, and Erwin L. Bangalan for soliciting investments to fund casino junket and financing operations.

The group promised annual profits of 60 to 111 percent, with returns guaranteed by postdated checks, through unregistered firms Philippine National ESports League, Horizon Players Club, and Team Z.

The SEC issued a CDO against the group in March 2023, made permanent in October 2024.