MANILA – The Securities and Exchange Commission (SEC) achieved a victory against fraudulent investment activities after securing the indictment of three groups that solicited investments from the public without the necessary licenses.
In separate resolutions, the Department of Justice (DOJ) found prima facie evidence to file criminal complaints against Eton Phil Non-Specialized Wholesale Trading, SCET Colleens Corporation, and the group of casino junket operator Hector Aldwin Liao Pantollana, as well as their respective directors and agents, for violating Republic Act 8799 or the Securities Regulation Code (SRC).
The groups were charged with engaging in unauthorized investment-taking activities without securing the necessary licenses from the SEC, in violation of the SRC.
Sections 8 and 28 of the SRC provide that securities shall not be sold or offered for sale without a registration statement duly filed and approved by the Commission, and expressly prohibit the sale of such securities by a company or broker without the proper registration and licenses issued by the SEC.
Meanwhile, Section 26 makes it unlawful for any person to employ any device, scheme, or artifice to defraud the public in connection with the sale of securities. Persons found guilty of the provisions of the SRC shall suffer a fine of up to PHP5 million, or imprisonment of up to 21 years, or both.
Eton Trading
For Eton Trading, state prosecutors recommended the filing of a criminal case against its founders Elton John Malabarbas and Princess Samson Frias.
Also implicated were the company’s agents, which include Irish Joy Ramos, Edgar Frias, Stefanie Aubrey Mana Madura, also known as Maricor Mana, Miracle Krizia Palmares, Kirth Chehth Mondido, Glyzeah Niña Erpelo, Rodelane Cincollagas, King Guiller Veniegas, Mikaela Najera, Bryan Almario, Ma. Fatima Wade, and Geri Lei Monique Yanes.
State prosecutors charged its proprietors for violating Sections 8 and 28 of the SRC, after the SEC found Eton Trading to have offered investment contracts covering frozen meat products for a monthly profit ranging from 20 to 50 percent, with capital investment of PHP5,000 to PHP100,000.
“In this case, respondents publicly offered their investment contracts without securing the necessary licenses or accreditation, thereby operating outside the regulatory framework designed to protect the investing public,” the resolution read.
The SEC posted an advisory to warn the public against investing in Eton Trading as early as February 2023. Subsequently, it issued a cease and desist order (CDO) in July of the same year, directing the company to stop its investment solicitation activities.
SCET Colleens
The DOJ recommended the filing of cases against SCET Colleen’s directors, Shara Jane Chavez, Earn Saguindel and Edith Francisse Tablante.
SCET Colleens and its directors were indicted for violating Sections 8 and 28 of the SRC, and for 28 counts of violating Section 26 of the same law, with each count representing each illegal transaction made with an investor.
The SEC filed the criminal complaint against SCET Colleens and its directors in May 2024, for offering investment opportunities with a promise of returns ranging from PHP3,800 to PHP1.08 million, or a return on investment between 5 to 8 percent per month, without the proper licenses.
“Respondents Chavez, Saguindel and Tablante committed fraud or deceit upon their investors by publicly offering and selling investment contracts without a secondary license or approval from the SEC,” the resolution read.
“Because of fraudulent representations made by Chavez, Saguindel and Tablante, several persons parted with their hard-earned money to invest in unregistered securities, resulting in the investors’ damage and prejudice,” it added.
The SEC issued a CDO against SCET Colleens in September 2021. It issued a revocation order against the company in February 2023, which became final and executory in May of the same year.
Casino junket operation
For the group of Hector Aldwin Liao Pantollana, state prosecutors implicated him together with Zeus Liao Pantollana, Reymond Lacsamana Galang, Quarry Quieng and Erwin L. Bangalan.
The group of Pantoll