Manila: The Securities and Exchange Commission (SEC) achieved a significant victory in its fight against fraudulent investment schemes by securing the indictment of three groups accused of soliciting investments from the public without obtaining the necessary licenses.
According to Philippines News Agency, the Department of Justice (DOJ) has found sufficient evidence to file criminal complaints against Eton Phil Non-Specialized Wholesale Trading, SCET Colleens Corporation, and a group led by casino junket operator Hector Aldwin Liao Pantollana. The charges include violations of Republic Act 8799, also known as the Securities Regulation Code (SRC), as these groups engaged in unauthorized investment activities without proper licenses from the SEC.
Sections 8 and 28 of the SRC explicitly prohibit the sale or offering of securities without a registration statement filed with and approved by the SEC. Additionally, Section 26 makes it illegal for any person to employ fraudulent schemes in connection with the sale of securities. Violations of the SRC can result in fines of up to PHP5 million, imprisonment of up to 21 years, or both.
For Eton Trading, state prosecutors recommended criminal charges against founders Elton John Malabarbas and Princess Samson Frias, as well as agents including Irish Joy Ramos, Edgar Frias, and others. The SEC found that Eton Trading offered investment contracts in frozen meat products promising monthly profits of 20 to 50 percent with capital investments ranging from PHP5,000 to PHP100,000. An advisory warning against Eton Trading was posted by the SEC in February 2023, followed by a cease and desist order (CDO) in July of the same year.
The DOJ has also recommended charges against SCET Colleens Corporation directors Shara Jane Chavez, Earn Saguindel, and Edith Francisse Tablante for offering investment opportunities with returns of 5 to 8 percent per month without proper licenses. The SEC had filed a criminal complaint against them in May 2024. The SEC issued a CDO in September 2021 and a revocation order in February 2023, which became final in May 2023.
For the group led by Hector Aldwin Liao Pantollana, state prosecutors implicated him along with Zeus Liao Pantollana, Reymond Lacsamana Galang, Quarry Quieng, and Erwin L. Bangalan. Their group solicited investments for casino junket operations, promising returns of 60 to 111 percent annually, guaranteed by postdated checks. The SEC issued a CDO against this group on March 23, 2023, which was made permanent on October 12, 2024.
The SEC advises the public to exercise caution and verify the legitimacy of investment offers by visiting the SEC website or using the SEC Check App.
