SEC flags more entities selling illegal securities
The Securities and Exchange Commission (SEC) has warned the public against investing in three entities that offer deceptive investment schemes.
In a document posted on its website, the regulator said it had received reports and inquiries about Recson Land Ventures and Realty Development Corp., Dual Fuel Petroleum Corp. and Legends Petroleum Inc.
These entities, it noted, had promised potential investors of higher returns through “coownership” and “profit-sharing” programs lasting for 20 to 30 years.
Recson Land Ventures, for instance, lures the public into investing as a “coowner” of a “Recson Hostel” for a minimum capital of P30,000 per slot, assuring investors that they would get a passive income for 30 years.
Dual Fuel Petroleum, meanwhile, offers individuals to become a “franchise coowner” for at least P500,000, claiming they would get quarterly earnings for 20 years.
These schemes likewise involved the offering and sale of securities in the form of an investment contract, the SEC noted.
Unauthorized investment solicitation
But the commission stressed that these three entities were “not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code.”
It also noted that one Charles Clifford F. Matta had not been issued certificate of registration as registered associated person, compliance officer, salesman and/or certified investment solicitor of a broker dealer in any securities investment, investment house, underwriter of securities, investment company adviser and/or mutual fund distributor.
Those involved as salesmen, agents or representatives of the entities may also face a maximum penalty of P5 million or imprisonment of 21 years, or both.
