Stop solicitation schemes, bogus Ayala firms told
Several companies, representing themselves as part of the Ayala Group, are no longer allowed to solicit investments from the public.
Acting on the call to uphold investors’ welfare, the Securities and Exchange Commission, or SEC, issued a cease and desist order against Ayala Corporation Group Inc., Ayala Corporation Budgetarian Online Shop, Global Online Ayala Corporation, Bellavita Ayala Corporation and Ayala Corporation E Commerce for fraudulent activities.
The SEC ordered the entities to immediately halt solicitation, offer, and/or sale of securities through investment contracts, without the necessary license.
They are also prohibited 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.
The SEC Enforcement and Investor Protection Department issued the order after it found that the bogus Ayala group invited investors to buy consumer products from partner sellers or merchants to improve store rankings in exchange for commissions.
The SEC order covers officers, operators, promoters, representatives, salesmen, agents, uplines, enablers, influencers, and any persons, conduit entities, subsidiaries, and affiliates claiming and acting for and on behalf of the bogus Ayala group.
Scheme uncovered
The bogus Ayala group’s scheme involved the sale and/or offer of securities in the form of investment contracts, where a person makes an investment of money in a common enterprise with the expectation of profits derived solely from the efforts of others.
Additionally, the bogus Ayala group was found to be displaying copies of fake incorporation documents with the SEC and registration papers with the Department of Trade and Industry to establish legitimacy.
“[The bogus Ayala group] willfully employed fraud by making it appear to the public that they are legitimate corporations authorized to sell, offer, and deal with securities,” the order read.
“The Bogus AC Group also used spurious DTI Certifications and SEC Registration Certificates to provide its unauthorized investmenttaking activities a semblance of legitimacy. The foregoing shows a clear intent on the part of the Bogus AC Group to defraud the public which, if unrestrained, will likely prejudice them.”