SEC issues cease and desist order vs Infinity8Networks
THE Securities and Exchange Commission (SEC) has issued a cease and desist order against Infinity8Networks Digital Services OPC and related entities for soliciting investments from the public.
The Commission En Banc on Jan. 16 directed Infinity8Networks to “immediately cease and desist” from engaging in unlawful solicitation, offer, and sale of securities without the necessary government license, the commission said in a statement on Thursday.
The regulator also prohibited Infinity8Networks from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of investors’ assets.
According to the SEC, the cease and desist order was issued after the commission’s enforcement and investor protection department found that Infinity8Networks was offering investment plans ranging from P500 to P5 million with a promised return of 30% in five days to 500% in 40 days.
The entity allegedly earns through cryptocurrency trading.
“Infinity8Networks’ scheme involved the sale and/or offer of securities in the form of investment contracts, whereby a person makes an investment of money, in a common enterprise, with the expectation of profits, to be derived solely from the efforts of others,” the SEC said.
The SEC said that Republic Act No. 8799, or the Securities Regulation Code, prohibits the sale or distribution of securities within the Philippines without the necessary registration statement approved by the government.
Based on the SEC’s records, the one-person corporation was registered under the name of Infinity8Networks Digital Services OPC. However, it neither registered for public offering nor secured a secondary license to sell securities.
“At the outset, the primary purpose clause in the articles of incorporation of [Infinity8Networks Digital Services OPC] specifically provides that it has no authority to solicit or accept investments from the public,” the SEC said.
“The commission further held that Infinity8Networks’ act of selling and offering securities without the requisite registration statement constitutes fraud which should be promptly restrained for the protection of the investing public,” it added.
In December, the SEC ordered the entity to pay a P1 million fine and revoked its corporate registration. The commission warned the public against Infinity8Networks through an advisory in November.
BusinessWorld sought comments from Infinity8Networks but has not received a response as of the deadline. —