SEC issues halt order vs Infinity8Networks
The Securities and Exchange Commission (SEC) ordered Infinity8Networks Digital Services OPC to stop selling illegal investment deals amid an ongoing crackdown on financial scams.
The corporate regulator issued a cease and desist order on its “unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.”
Furthermore, the SEC prohibited Infinity8Networks from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of its investors. “The order covers Infinity8Networks’ single stockholder, director and president, Franco Delacruz Flordeliza, nominee James Flordeliza, alternate nominee Dave Delacruz Flordeliza, founder and chief executive officer Froilan Pediongco Flordeliza, and other officers, operators, promoters, representatives, salesmen, agents, uplines, enablers, influencers, and any and all persons, conduit entities, subsidiaries and affiliates claiming and acting for and on its behalf,” the SEC said.
The order was issued after the SEC’s enforcement and investor protection department discovered that Infinity8Networks was selling investment contracts promising returns of up to 500 percent in 40 days. It also offered additional money for customer referrals. The Securities Regulation Code provides that securities shall not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the SEC. INQ
