SEC to Zambo firm: Stop selling securities
THE Securities and Exchange Commission (SEC) has directed a Zamboanga-based company to stop soliciting investments from the public, as it does not have the requisite license.
A November 26 order approved an Enforcement and Investor Protection Department (EIPD) request for a cease and desist order against Silverlion Livestock Trading Corp., which had been found to be selling securities through its website and on social media without an SEC license.
The EIPD had acted on an October 11 request from the National Bureau of Investigation’s Western Mindanao office, which inquired about Silverlion’s registration certificates.
Incorporated as a wholesaler of frozen products, meats and dried fish, Silverlion was said to be also selling investment packages promising a return of 2.3 percent per day or 35 percent in just 15 days.
A P1,000 investment, for example, was guaranteed to pay out P1,300 in 15 days, while P10,000 and P100,000 would net the investor P13,000 and P130,000, respectively. Those willing to park P400,000 with Silverlion for 60 days were promised a Ford Raptor pick-up or any car of their choice.
The EIPD subsequently found that while Silverlion was registered with the Department of Trade and Industry (DTI), it did not have SEC approval to solicit investments. The firm’s articles of incorporation, the SEC noted, specifically state that it “shall not solicit, accept or take investments/ placements from the public, neither shall tissue investment contracts.”
“After carefully considering the motion which was supported by substantial evidence, the commission holds that the EIPD was able to establish that Silverlion … is selling and/or offering unregistered securities in the form of investment contracts to the public without the requisite license from the commission, in violation of its AoI but also of the relevant provision of the SRC (Securities Regulation Code) and its IRR (implementing rules and regulations),” the commission said.
Silverlion, along with incorporator, director, treasurer, and DTI-registered owner Ryan Caged Ladoing and incorporator/director Renan Caged Ladoing, was ordered to immediately stop soliciting and selling investment contracts and similar products until it applies for and secures an SEC license.
Both were also ordered to “cease their internet presence relating to the transactions and investment scheme” under threat of the filing of administrative and criminal charges.
Lastly, Silverlion, the Ladoings and any persons or entities acting on their behalf were prohibited from transacting “any business involving funds in its deposit banks and from transferring, disposing or conveying in any manner, any and all assets, properties real or personal, including bank deposits, if any … under their custody to ensure the preservation of the assets of the investors.”