SEC cracks whip on bogus Ayala firms
A group posing as part of the Ayala Group and soliciting investments from the public has been ordered to stop its fraudulent operations by the Securities and Exchange Commission (SEC).
The SEC issued a cease and desist order against Ayala Corp. Group Inc., Ayala Corp. Budgetarian Online Shop, Global Online Ayala Corp., Bellavita Ayala Corp. and Ayala Corp. E Commerce as these entities appear to impersonate the publicly listed Ayala Corp. (AC) conglomerate.
These firms, however, are not related or connected to AC and are not registered with the SEC either as a corporation or as a partnership.
They also do not have the authority or license to offer and sell securities to the public.
Since June last year, the SEC’s Enforcement and Investor Protection Department (EIPD) has received reports and complaints regarding the alleged investment solicitation activities of the bogus AC group.
EIPD investigation showed that the group is engaged in a scheme called “tasking and recharging,” wherein online jobs are offered to prospective investors who will be asked to perform certain tasks in exchange for monetary rewards in the form of commissions.
An investor who successfully completes a task is then given another task, which will entitle him/her to receive additional commissions if completed.
SEC said the bogus AC group has also been found using fake Department of Trade and Industry certifications and SEC registrations to entice the public to invest.
“The unauthorized investment scheme of the bogus AC group essentially involves soliciting money from the investing public which it requires to be sent directly to the accounts of its managers or operators. The scheme is attractive and has in fact enticed a considerable number of memberinvestor,” the SEC said.
“However, as soon as a member-investor parts with his/her money, it can no longer be recovered. The evidence on record shows that in some instances, the member-investor is held hostage by the bogus AC group which demands for additional investment as a condition for the return of the original investment,” it said.
AC, the publicly listed holding company for the diversified interests of the Ayala Group, has also previously warned the public against a certain Ayala Investment App using the company’s logo on social media channels to promote illegal investment schemes.
As a listed company, AC’s stocks may only be purchased via licensed stock brokers accredited by the Philippine Stock Exchange.
The bogus AC group as well as its representatives and all persons claiming and acting on their behalf have also been directed by the SEC to cease their internet presence relating to the transactions and investment scheme covered by the order.