Cebu-based Fergus, Inc. faces a major legal blow as the Department of Justice (DOJ) indicted two top officers for illegally soliciting investments.

Citing a 29 September resolution, the Securities and Exchange Commission (SEC) said the DOJ found prima facie evidence to charge Fergus President Jefferson M. Acas, Jr., and Corporate Secretary and Chief Finance Officer Rosemarie V. Mayorga with violations of Sections 8, 26, and 28 of the Securities Regulation Code (SRC), in relation to Section 6 of the Cybercrime Prevention Act.

State prosecutors also recommended filing criminal charges for violations of Section 11, in relation to Section 3(f), of the Financial Products and Services Consumer Protection Act (RA No. 11765), again in connection with the Cybercrime Prevention Act.

The DOJ upheld the SEC’s findings that Fergus sold securities without the required secondary license to operate as a broker or dealer.

The case followed an NBI investigation prompted by complaints from Australian clients represented by Padlan Salvador & Associates, who claimed they were defrauded. The SEC found Fergus was offering investment contracts through automated trading software.

“Respondents Mayorga and Acas represented that they market a set of e-books or materials that included software, but there was no proof of said e-books or materials,” the DOJ resolution read.

“Instead, Fergus operated as a business process outsourcing entity to encourage customers to earn passive income through an automated trading machine, which supposedly has the capability to assess the different financial markets and make the best trading decisions for the customers without them having to do the trading themselves for a minimum investment amount of $250,” it added.