SEC stops unauthorized lenders posing as Tekwang Lending
The Securities and Exchange Commission (SEC) has ordered entities posing as Tekwang Lending Corp. and its online lending platform, Tekcash, to stop unauthorized lending activities following reports of borrowers seeking assistance through fake accounts.
In a cease-and-desist order (CDO), the SEC’s Financing and Lending Companies Department (Finlend) directed those behind the Facebook page “Tekcash Online Loan Victims” to immediately stop engaging in, promoting or facilitating lending transactions without the commission’s authority.
The directive covers the page’s owners, representatives and anyone acting on their behalf.
Also covered are the operators of the Facebook account “TekCash Loan Lending” and the email address [email protected].
The respondents were barred from presenting themselves as Tekwang or Tekcash, or claiming ownership, operation or any connection with the registered lending company and its platform.
They were also ordered to stop operating, maintaining and promoting the identified Facebook channels and email address.
The SEC issued the order after Tekwang reported a Facebook group and an associated account carrying testimonials from individuals who had obtained loan assistance through the fake email address.
Tekwang denied owning or operating any of the channels covered by the CDO. It said it had received complaints and requests for help from borrowers and members affected by the accounts’ unauthorized activities.
Finlend’s investigation found that the operators had no authority from the SEC to engage in lending. They were also not authorized representatives, agents, third-party providers or digital channels of Tekwang.
“Respondents are using the identity of a duly registered lending company through unauthorized digital channels; creating the appearance that they are authorized to assist or participate in lending transactions; and exposing financial consumers to deception by persons whose identities and regulatory standing have not been established,” the order read.
Under Republic Act No. 9474, or the Lending Company Regulation Act of 2007, companies must obtain authority from the SEC before engaging in lending transactions.
