The Securities and Exchange Commission (SEC) has shut down Valtoro Spartan Consultancy Corp. and Recson Land Ventures and Realty Development Corp., revoking their registrations in a crackdown on illegal investment schemes that put the public at risk.

Citing separate orders, the regulator said Saturday that its Enforcement and Investor Protection Department canceled the firms’ corporate registrations and imposed administrative fines after finding that they had solicited investments without the required licenses in violation of the Revised Corporation Code of the Philippines and the Securities Regulation Code.

Both companies barred from operating

The move effectively bars both companies from operating and underscores heightened regulatory action against fraudulent schemes targeting retail investors.

Valtoro Spartan was fined P1 million, with the same penalty imposed on its incorporators, stockholders, and officers. Its incorporators, Kelly Reno Escaner Velayo and Jether Llavan Marañon, along with Corporate Secretary Kyle Matthew Castro Jarque, were also found liable for investment fraud and disqualified from holding corporate positions for five years.

Aggressive marketing of online subscription plans

The company had aggressively marketed online “subscription plans,” promising returns of up to 912.5 percent in as little as 15 days, paired with multi-level referral commissions designed to draw in more investors.

“Considering that the act of offering investment to the public is not included in the primary purpose of Valtoro Spartan, the declared primary purpose was done with fraudulent intent due to the large disparity of its declarations in the AOI and its actual business operation,” the order read.

The SEC had already flagged Valtoro Spartan in a public advisory as early as January.

Recson Land was likewise fined P1 million, with its incorporators ordered to pay the same amount, after it offered unregistered investment slots tied to a supposed hostel project. Investors were enticed to put in at least P30,000 per share in exchange for “passive income” over 30 years.

Ponzi scheme

Regulators said the setup bore hallmarks of a Ponzi scheme, where payouts depend on new investor money rather than real business activity — raising the risk of eventual collapse and investor losses.