SEC moves to padlock illegal investment-taking firm

MANILA  —The Securities and Exchange Commission (SEC) announced the shutdown of Infinity8Networks Digital Services OPC for illegally selling investments to the public.

The corporate regulator said it had revoked the corporate registration of the firm and imposed an administrative fine of P1 million.

“While Infinity8Networks is registered as a one person corporation with the SEC, it has not secured prior registration and/or license from the Commission for the conduct of a public offering. Its [charter] also expressly prohibits the company to conduct investment-taking activities,” the SEC said.

READ: Protection against investment fraud

The order was earlier issued by the SEC’s Enforcement and Investor Protection Department, which found Infinity8Networks in violation of Section 44 of Republic Act No. 11232, or the Revised Corporation Code of the Philippines, in relation to Sections 8.1, 26, and 29.1 of Republic Act No. 8799, or the Securities Regulation Code (SRC) and Section 6(i)(2) of Presidential Decree No. 902-A or the SEC Reorganization Act.

“Under the RCC, no corporation shall possess or exercise corporate powers other than those conferred by law or by its articles of incorporation,” the SEC said.

“Meanwhile, the SRC provides that securities shall be registered with the SEC before they can be offered to the public. Entities offering such securities must likewise secure the necessary license from the Commission,” it added. —Miguel R. Camus INQ