SEC cancels incorporation of Seek Explore
The Securities and Exchange Commission (SEC) has canceled the papers of another firm for soliciting investments from the public without regulatory approval.
Based on an order dated Dec. 12, the SEC Enforcement and Investor Protection Department had revoked the certificate of incorporation of Seek Explore Sports Association Inc.
The company was focused on rolling out “synergistic activities,” providing community programs on health, education and livelihood. It also facilitated fundraising activities and outreach programs.
However, the SEC said Seek Explore was found to have offered unregistered securities worth P500 up to P140,000. It promised investors of gains from P30 to P1.79 million.
Investors were also promised a commission of up to 17 percent.
This strategy, the SEC said, mirrors a “Ponzi scheme.” This is a fraudulent setup where funds from new investors are used to provide “profits” to older ones.
“The act of [Seek Explore] through its affiliates in allowing certain persons acting as their agents or representatives to make public presentations of their investment scheme, inviting the public to invest in the companies through social media, renders them liable for the unauthorized public offering of securities and the misrepresentation committed in connection with such public offering,” the order read.
“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme,’ which is fraudulent and unsustainable, is not a registrable security,” it added.
The order noted that the SEC “[would] not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.”
