SEC shutters two firms over illegal investment schemes
The Securities and Exchange Commission (SEC) has revoked the corporate registrations of Valtoro Spartan Consultancy Corp. and Recson Land Ventures and Realty Development Corp. for illegally soliciting investments from the public without the required licenses.
In separate orders, the SEC’s Enforcement and Investor Protection Department canceled the two firms’ certificates of incorporation for violating provisions of the Revised Corporation Code and the Securities Regulation Code.
The violations included unauthorized offering of securities, fraudulent transactions and engaging in activities beyond their declared corporate purposes.
The regulator said both firms sold investment contracts without securing prior registration or approval from the Commission, a requirement under the law.
The SEC added that such activities also constituted “ultra vires acts” or actions beyond the powers granted under their articles of incorporation.
Valtoro Spartan was found to have offered five lock-in subscription plans through its website and social media pages, promising returns ranging from 7.5 percent to as high as 912.5 percent within a period of 15 days to 12 months for a minimum investment of $50.
The company also ran referral-based incentives, including a 5-percent commission for direct recruits and additional multilevel bonuses extending up to the 10th level.
The SEC imposed a P1-million fine on Valtoro Spartan, its incorporators, stockholders and officers for the unauthorized offering of securities.
Valtoro Spartan’s incorporators Kelly Reno Escaner Velayo and Jether Llavan Marañon, along with corporate secretary Kyle Matthew Castro Jarque, were also held liable for investment fraud. They are barred from serving as corporate directors, trustees or officers for five years.
Recson Land was also fined P1 million, with its incorporators ordered to pay the same amount.
The company was found to have enticed the public to invest at least P30,000 per share to become co-owners of a hostel, promising passive income for up to 30 years.
The SEC noted that the scheme resembled a Ponzi setup, where payouts depended on new investments rather than legitimate business operations.
The regulator stressed that Recson Land’s activities were not covered by its primary purpose, making its investment offering a form of serious misrepresentation.
The SEC emphasized that offering securities without proper registration and license undermines investor protection rules, reiterating its warning against entities that promise unusually high returns and operate outside regulatory oversight.
