‘Ukay-ukay’ owner in hot water for money laundering

The Securities and Exchange Commission (SEC) has filed a criminal complaint, which includes allegations of money laundering, against a used-clothes supplier as the corporate watchdog intensifies efforts against sham investment schemes.

In a statement on Wednesday, the SEC said it had filed the complaint against Bulacan Ukay Ukay Direct Supplier owner Elaine Joy Zapata Silva before the Department of Justice (DOJ) for selling securities to the public without the required permits, violating the Securities Regulation Code (SRC).

According to the commission, it had received reports that Silva was soliciting investments worth P2 million to P4 million with a promise of up to 10 percent in monthly returns.

The SEC Enforcement and Investor Protection Department later confirmed that Silva did not have the necessary registration and license from the regulator.

“The boldness of [Bulacan Ukay Ukay and Silva] to offer or sell securities to the public despite the fact that she knew fully well that [they] do not possess the requisite license or permit from the SEC is an act constituting fraudulent transaction punishable under … the SRC,” the commission said.

The SEC added Silva’s violation of the SRC constitutes money laundering and that she may be charged under the Anti-Money Laundering Act.

Silva may likewise be charged for violating Republic Act No. 10175, or the Cybercrime Prevention Act, since she had marketed the schemes via social media.

Under the SRC, companies are not allowed to sell or offer securities to the public without an approved registration statement.