SEC files criminal complaints against unlicensed investment schemes

MANILA, Philippines — The Securities and Exchange Commission (SEC) is intensifying its crackdown on groups soliciting public investments without the necessary registration and licenses.

The SEC has lodged separate complaints with the Department of Justice against Bear Mountain World Inc., Beyond Skin Care Ventures Inc., SCET Colleens Corp, and Great 4 International Marketing Corp for violating various provisions of Republic Act No. 8799, also known as The Securities Regulation Code (SRC).

In a statement, the SEC said the complaints implicated the incorporators and officers of these entities.

For Bear Mountain, the implicated individuals include Ray Gian Larry G. Gervacio, Nathaniel P. Espanola, Lawrence S. Aliac, Emmanuel U. Cawit, Lailanie P. Ganela, Oscar L. Ora-a, Dante dela Cruz Llave, Danilo R. Allen, Ralph Emmanuel P. Mendoza, Danahlyn Anjelica D. Itom, Raquel L. Ricafort, and Jasmin I. de Leon.

Beyond Skin Care Ventures, the SEC said, faces charges alongside Chanda P. Atienza, Maila B. Castillo, Jefferson Perez, Venus Eunizel P. Gonda, Catherine A. Salazar, Glen Guarin, Noelan Daz, Ronan Kemley Laig, and Pearline Charlotte Castillo.

All registered but no license to sell securities

In the case against SCET Colleens, those implicated include Shara Jane Casao Chavez, Kay Anne Cuizon Leyson, Edith Francisse Villegas Tablante, Earn Sta. Rita Saguindel, and Artemio Tarona Ponce, Jr.

READ: SEC steps up campaign vs scammers

For Great 4 International Marketing, the accused are Rannie Amora Nadela, Rizza Pardo Natividad, Glenn Blair Carnicer Morales, Marlon Salvador Adriano, Marvin Agraviador Langam, Cesaridad Palarca Obena, and Clyde Justine Ceralde.

The SRC mandates that securities cannot be sold or distributed without a registration duly filed and approved by the SEC. Violators of the SRC provisions face fines of up to P5 million, imprisonment of up to 21 years, or both.

Bear Mountain allegedly offered investments promising a guaranteed monthly income of 20 percent to 30 percent over three years.

The SEC said Beyond Skin Care Ventures, operating as Dermacare Face Body and Laser Center, purportedly enticed public investments through a franchise partnership agreement, promising a guaranteed return of 12.6 percent interest quarterly for five years, along with complimentary salon services.

Great 4 International Marketing, under the brand Home Organic Wellness, distributed marketing materials promising a guaranteed monthly income of 14.4 percent over 18 months and used a motorcycle selling scheme to attract investors.

Fines and imprisonment

SCET Colleens was found offering investments ranging from P3,800 to P1.08 million, with promised monthly returns of 5 percent to 8 percent.

READ: Protection against investment fraud

These corporations solicited investments from the public without the necessary SEC licenses, violating Sections 8, 26, and 28 of the SRC.

Sections 8 and 28 prohibit selling securities without a registration statement approved by the SEC and forbid the sale of securities by unlicensed companies or brokers. Section 26 makes it illegal to use any fraudulent device or scheme in connection with the sale of securities.

While these corporations were registered with the SEC, none secured the required secondary license to offer securities.

The SEC’s Enforcement and Investor Protection Department (EIPD) has already revoked the corporate registrations of SCET Colleens and Beyond Skin Care Ventures on Feb 23, 2023, and Nov 7, 2023, respectively.