Shopping club soliciting investments shut down in La Union

SAN FERNANDO CITY, La Union — Authorities shut down last Wednesday the operation of the Klikmart Shopping Club Corporation in this city, for declaring its business as a general merchandise retailer but allegedly operating as a multi-level investment firm.

Officials from the City Permits and Licensing Office (CPLO), backed up by police, implemented the closure order signed by Mayor Pablo Ortega for Klikmart’s office on the 3rd floor of Paris Building, Barangay 3, here.

Melchor Galvez, implementing officer of the Closure Order, said the firm, through its “Klikmart Rewards” program, allegedly solicits investments from the public with the promise of a heftier pay-out but without the necessary permit from the Securities and Exchange Commission (SEC).

Galvez said Klikmart only applied last June for a permit from the city to establish an office for a “shopping club” that has 1,000 members and distributes mostly goods like soap, perfumes, wares, and merchandise on a wholesale basis.

Klikmart, however, was not authorized to solicit investments, said Galvez.

Spouses Randy and Gina Villareal, Klikmart’s branch managers, confronted Galvez and the police, and denied the allegations against their firm and maintained their operations are above board.

“This company is only one of the branches. Why don’t they run after its main office?” said Mr. Villareal.

“We will meet with all our members tomorrow to prove that there are many who benefitted from this company, including senior citizens and that we are not an ‘investment company,” added his wife.

Lani Grace Balicha, one of the supposed investors who happened to pass by and notice the building crawling with police, went up the Klikmart office demanding that she get her 9,000 investment in the company.

She told the Manila Bulletin she had initially invested P3,000 in Klikmart and got her money back plus an interest of 1,000 within the month, so she decided to reinvest until her investment reached 9,000.

Balicha said she gets her “reward” every 21st of the month, but after learning the firm was being shut down, she wanted to pull out her money.

“This is wrong. This is harassment. They should have not made us complete the requirements like fools if they’d order our closure later,” Mr. Villareal said.

It was learned that Klikmart Corp. has a Metro Manila main office which started its operation last January. It is listed under the name of Romel Julaton, its CEO and president.