SEC flags entities involved in investment scams

The Securities and Exchange Commission (SEC) has so far flagged more than 100 groups this year believed to be involved in investments scams.

During the company’s accomplishment report for its 84th anniversary, the corporate regulator said it has already almost doubled the number of flagged entities for the entire year of 2019.

It also issued cease and desist orders (CDOs), and revoked the registration of entities engaging in unauthorized investment-taking.

The SEC continues to actively prosecute scammers before the courts. These include 32 individuals charged in seven cases with violations of the Securities Regulation Code, and in two cases for violations of the Cybercrime Prevention Act of 2012.

To help educate investors and help them protect themselves from fraudulent schemes, the SEC has also stepped up its campaign through webinars and advisories.

Similarly, the SEC has continuously cracked down on illegal lending by revoking the licenses of these entities.

To date, the SEC has revoked the registration of 2,081 lending companies for engaging in lending and financing activities without the necessary Certificate of Authority. It also issued CDOs against the owners and operators of 58 unauthorized online lending applications.

Aside from revoking licenses, the SEC also pursued those behind these illegal entities.

It has successfully obtained the conviction of 42 accused individuals, of whom 20 are foreign nationals. The accused were involved in four criminal cases for violation of the Lending Company Regulation Act.

Thus, the SEC continues to actively prosecute 152 individuals including 65 foreign nationals for false statements made in their application documents in violation of Lending Company Regulation Act, and for falsification of public documents.

The SEC likewise took steps to help borrowers cope with the impact of the pandemic by directing covered institutions to implement grace periods for all loans with principal and/or interest falling due within the enhanced community quarantine period.

In the area of good corporate governance and investor rights, the SEC also issued guidelines allowing meetings via remote communications, and by upholding the right of shareholders to put items on the agenda for regular and special stockholders’ meetings, vote on the sale of corporate assets and inspect corporate books, among others.

“As we move toward attaining our SuperVision 2025, the commission remains committed to promoting the development of the Philippine capital market and business sector, and to protecting the investing public from predatory investment schemes and other abusive practices,” said SEC chairperson Emilio Aquino.