SEC shutters 3 Mindanao organizations soliciting ‘donations’
CEASE AND DESIST ORDERS ISSUED

SEC shutters three Mindanao organizations soliciting ‘donations’

/ 02:02 AM June 18, 2024

SEC files criminal complaint vs casino junket operator, partners

INQUIRER.net FILE PHOTO

MANILA, Philippines — Three supposed religious organizations based in Mindanao have been slapped with a cease and desist order by the Securities and Exchange Commission (SEC) after they were found to have been allegedly soliciting investments in the guise of donations from the public.

Based on the SEC commission en banc’s order dated May 21 that was made public last Friday, Hasmadai Foundation Inc., Humanitarian and Spiritual Mission Apostulates of Davao and Asia Inc., and Humanitarian Institute of Technology Corp. were told to stop offering securities through “charity mission support pledge forms.”

Article continues after this advertisement

The provincial government of Agusan del Sur and the SEC Butuan extension office found that the groups led by Dante Encarnacion Tabusares enticed local and foreign donors to donate a certain amount that would entitle them to a monthly “missionary allowance.”

FEATURED STORIES

The allowance is equivalent to 27 percent to 34 percent of their donation, with some pledging as much as P20,000

For example, a pledge of P5,000 will entitle a donor to receive a monthly allowance of P1,850, minus a “spiritual medical assistance” fee of P500, therefore netting P1,350.

Article continues after this advertisement

Tabusares admitted to accepting donations and being a former member of another religious corporation whose certificate of registration was previously revoked over investment fraud, the SEC said.

Article continues after this advertisement

Securities Regulation Code

The SEC Enforcement and Investor Protection Department (EIPD) pointed out that the groups’ investment schemes were “essentially an offer/sale of unregistered securities in the form of investment contracts to the public,” thus violating the Securities Regulation Code.

Article continues after this advertisement

READ: Law protecting financial product users now in effect

According to the corporate watchdog, the Sangguniang Bayan of San Francisco, Agusan del Sur province conducted a committee hearing on the registration status of the Hasmadai groups in April.

Article continues after this advertisement

While Humanitarian and Spiritual Mission Apostulates of Davao and Asia Inc. was previously issued a certificate of incorporation, the EIPD learned that the other groups were not registered as corporations.

READ: SEC partners with US counterpart, ADB to combat financial crimes

At the same time, they did not have authority to conduct national fund campaigns, the SEC added, as they were not issued permits by the Department of Social Welfare and Development.

As a result, the SEC ordered the groups, as well as their officers and other affiliated individuals, to “immediately cease and desist from engaging in activities of offering for sale of securities” in the form of mission support pledges and other similar activities.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

They were likewise ordered to stop any online campaign related to the investment scheme. —MEG J. ADONIS INQ

TAGS: SEC, Securities Regulation Code

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.