SEC issues CDO vs bogus Ayala group

The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) versus groups using the name of Ayala Corp. to illegally solicit investments.

In an order dated Feb. 22, the corporate regulator directed Ayala Corp. Group Inc., Ayala Corp. Budgetarian Online Shop, Global Online Ayala Corp., Bellavita Ayala Corp. and Ayala Corp. E Commerce to immediately cease and desist from further engaging in the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts.

The SEC commission en banc prohibited the groups from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of its investors.

According to the SEC, the CDO “covers officers, operators, promoters, representatives, salesmen, agents, uplines, enablers, influencers, and any and all persons, conduit entities, subsidiaries and affiliates claiming and acting for and on behalf of the bogus Ayala group.”

The order was issued after the SEC Enforcement and Investor Protection Department (EIPD) found that the bogus Ayala group has been conducting an unregistered investment scheme called tasking and recharging, which offers online jobs to prospective investors who are tasked to perform certain tasks in exchange for commissions.

The EIPD’s probe found that investors are also invited to buy consumer products from partner-sellers or merchants to improve store rankings to receive commissions.

The regulator said Section 8 of Republic Act 8799 or The Securities Regulation Code provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

The bogus Ayala group was also found to be showing copies of fake incorporation documents with the SEC and registration papers with the Department of Trade and Industry to establish legitimacy, the SEC’s EIPD said.