THE Securities and Exchange Commission (SEC) has revoked the corporate registrations of Valtoro Spartan Consultancy Corp. and Recson Land Ventures and Realty Development Corp., citing their involvement in unauthorized investment solicitation.
The SEC’s Enforcement and Investor Protection Department, in separate orders, canceled the two firms’ certificates of incorporation and imposed administrative fines for violating provisions of the Revised Corporation Code of the Philippines and the Securities Regulation Code.
The regulator said both were found to have engaged in the sale of securities in the form of investment contracts without securing the necessary licenses or registration.
Under the law, offering securities without an approved registration statement and operating as brokers or dealers without authorization are prohibited and fraudulent transactions in connection with the sale of securities are punishable.
The SEC fined Valtoro Spartan, along with its incorporators, stockholders and officers, P1 million each for the unauthorized offering of securities.
Incorporators Kelly Reno Escaner Velayo and Jether Llavan Marañon, as well as corporate secretary Kyle Matthew Castro Jarque, were also found administratively liable for investment fraud and disqualified from serving as directors, trustees, or officers of any corporation for five years.
The company was found to have offered investment plans through its website and social media pages, promising returns ranging from 7.5 percent to as much as 912.5 percent within 15 days to 12 months, for a minimum investment of $50. It also provided referral-based incentives, including direct commissions and multi-level bonuses, to attract additional participants.
The SEC noted that offering investments to the public was not included in Valtoro Spartan’s primary purpose, adding that the discrepancy between its declared purpose and actual operations indicated fraudulent intent.
The commission had earlier issued an advisory in January warning the public against investing in the firm.
Meanwhile, Recson Land was likewise fined P1 million for offering unregistered securities, with the same penalty imposed on its incorporators, after it was found to have enticed the public to invest in a hostel project by offering co-ownership slots for at least P30,000 each, with the promise of passive income over 30 years.
The SEC said the scheme exhibited characteristics of a Ponzi operation, where payouts are derived from funds of new investors rather than legitimate business activity.
It added that the firm’s investment solicitation activities were not authorized under its primary purpose and were therefore a form of serious misrepresentation.
The commission reiterated its warning to the public to exercise caution and verify the legitimacy of investment offerings, stressing the need to avoid schemes that promise unusually high returns with little or no risk.