MANILA -- Operatives of the Securities and Exchange Commission (SEC) and the Philippine National Police (PNP) arrested 12 supposed “promoters” of an unregistered investment company in an entrapment operation last Nov. 24 in Pasig City.
In a statement, the SEC said arrested were Tan Yan Chao (Hen Yanchao), Josephine Delgado Maranan, Milany Peligro Cabrera, Nanette Diaz Tongco, Joy Camille Andaya Pural, Anita Egana Armada, Virgilio Castillo, Denmark Salazar, Jacinto Lucio de Catalina, Jay Nasayao Moral, Gerald Lansangan Samson and Venancio Gacus Mendoza.
Another suspect managed to evade arrest but was later identified as Pastor Benny Cabrera.
The suspects touting for GDM Finance Sarl, a Switzerland-based investment company, were conducting an investment-solicitation session and enticing the attendees to invest their money, claiming this would be utilized to purchase or trade stocks in the New York Stock Exchange.
Following their arrests, the SEC Enforcement and Investor Protection Department (EIPD) filed criminal cases for violations of Securities Regulation Code (SRC), and Republic Act 10175, otherwise known as the Cybercrime Prevention Act of 2012, for publicly offering investment online through Facebook without license from the SEC.
Eleven of those arrested were likewise charged with the offense of resisting arrest, while two others were charged with direct assault under the Revised Penal Code.
The maximum penalty that may be imposed for such violations is a fine amounting to PHP5 million, or imprisonment of 21 years or both at the discretion of the court.
The SEC reminded the public that the unlawful public offering of securities or solicitation of investments is punishable under the SRC.
“Likewise, those who act as salesmen, brokers, dealers or agents in offering or selling securities without a license from the Commission will be prosecuted and held criminally liable under Section 28 of the SRC. Solicitation of investment without the necessary license is also prohibited under Section 26 of the SRC,” it added. (PNA)
