JRL Kwarta Trading fined for illegal investment schemes

A company found to have been selling securities without the proper authorization from the Securities and Exchange Commission (SEC) was ordered to pay fines totaling P750,000 as the regulator intensifies efforts against fraud.

Citing an Aug. 26 decision of the Pangasinan Regional Trial Court Branch 56, the SEC said JRL Kwarta Trading Co. employees Maritonie dela Cruz Padlan, Maria Lyka Resuello Caguioa, Cindy Favia Muñoz, Jericho Caguioa Mateo and Nelson de Guzman Pagdanganan had violated three sections of the Securities Regulation Code (SRC).

Each employee was ordered to pay P50,000 for each violation, totaling P150,000 per person.

Under Section 8 of the SRC, offering and selling securities without a registration statement filed with and approved by the SEC is prohibited.

Meanwhile, Section 26 states it is unlawful for a person to engage in any act, transaction, practice or course of business that would “constitute fraud or deceit upon any person, among others.”

Section 28 of the law mandates that all individuals selling or buying securities in the country must be registered with the SEC.

The court said JRL Kwarta employees had all pleaded guilty to the charges.

“Considering the spontaneous and voluntary plea of guilt of the five accused to all charges, the court finds no legal impediment to rendering judgment based thereon,” the court said.

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The SEC Enforcement and Investor Protection Department earlier found that JRL Kwarta had posted online a supposed advertisement of a “Profit Schedule Adjustment” related to its payout schemes. It noted that the company was enticing the public to invest in the program.

The corporate watchdog likewise found that JRL Kwarta had offered a cryptocurrency investment scheme that required a minimum investment of P30,000 and promised a monthly release of profits.

These transactions were likewise unauthorized, according to the SEC.

The five employees were arrested on May 13 in an entrapment operation conducted by the Philippine National Police.