THE SECURITIES and Exchange Commission (SEC) has ordered a financial consultancy company and its affiliate firms to stop soliciting money disguised as an investment platform for alleged gambling, medical supplies, and export firms.
In a statement on Thursday, the SEC directed the one-person corporation (OPC) Royal O’ Consultancy Services, based in Mandaue City in Cebu, to immediately stop selling and/or offering securities in the form of investment contracts until they have filed and secured the necessary license.
The corporate regulator also barred the company from putting funds in its depository banks and from transferring any related assets to ensure their preservation for the benefit of affected investors.
The SEC order covers Royal O’s affiliate units Oromagnet International EGames, Plasmatech Medical Supplies Trading, and Princess Joana Jo Alfajid Foundation, as well as its owner and chief executive officer Princess Joana Jo Alfajid Campos and president Gretchen Aguas.
The order also extends to representatives, salesmen, solicitors, agents, uplines, enablers, and influencers.
The SEC issued the order after finding that Royal O’ has been offering and selling securities without securing a secondary license from the agency.
Royal O’ offers two investment programs depending on the amount an investor is willing to part with.
An investment of PHP5,000 to PHP499,000 with a three-month contract would yield a daily return of 3 percent or 201 percent in 67 days.
An investor who places PHP500,000 to PHP10 million is guaranteed higher returns at 60 percent per month, or 360 percent for six months.
Member-investors could also earn by recruiting more people into the program, where they are promised an additional 6 percent for direct referrals and downlines.
The funds sourced from the public are then supposedly invested in various businesses being managed and operated by Campos, such as Oromagnet and Plasmatech.
Section 8 of Republic Act 8799, or the Securities Regulation Code, provides that securities shall not be sold within the Philippines without a registration statement duly filed with and approved by the SEC.
Royal O’ initially registered with the Department of Trade and Industry under the name Royal O’ Financial Consultancy Services, and subsequently as an OPC with the SEC.
However, records show it has never secured a secondary license from the Commission as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the SRC.
The SEC warned the public against investing in Royal O’ as early as Feb. 5, 2021 through an advisory, as well as through an investor alert posted on its official Facebook page on Feb. 10, 2021. (Carlo Lorenciana)
No comments:
Post a Comment