SEC pursues raps vs Facebook scam perpetrators
A trading company illegally selling investments that promise high profits has found itself in the crosshairs of the Securities and Exchange Commission (SEC).
In a statement on Friday, the corporate regulator said it filed a criminal complaint against officials of Eton Phil Non-Specialized Wholesale Trading with the Department of Justice after they were found to be soliciting investments from the public without the required license to do so. The complaint named as respondents founders Princess Samson-Frias and Elton John M. Malabarbas, among others, the statement showed.
An earlier investigation revealed efforts by the company to lure unwitting investors through social media giant Facebook, according to the SEC.Eton Trading supposedly offered a 20-percent to 50-percent profit monthly on investments starting at P5,000. Earnings would allegedly come from the sale of wholesale products, the SEC added.“There is sufficient proof that Eton Trading and [its officers] employed fraud and deceit upon the investing public to induce them to invest in this scheme,” the complaint read. “Lured by the false promise of quick financial gains on their investments, unsuspecting people readily turned over their hard-earned money to the coffers of Eton Trading,” it added.
According to the SEC, Eton Trading is not registered with the commission as a corporation. It also failed to secure a permit to sell investments.The regulator issued a public warning against the firm in Feb. 15 last year. A subsequent halt order was served four months after. The SEC said Eton Trading was found to be in violation of Sections 8, 26 and 28 of Republic Act No. 8799, or the Securities Regulation Code (SRC) and Section 11 of RA 11765, or the Financial Products and Services Consumer Protection Act.“The SRC prohibits the sale or distribution of securities without a registration duly filed and approved by the commission. Persons found guilty of the provisions of the SRC shall suffer a fine of up to P5 million, or imprisonment of up to 21 years, or both,” the corporate watchdog said. —Miguel R. Camus INQ
