SEC clamps down on Sherman Brothers

The Securities and Exchange Commission (SEC) has ordered Sherman Brothers Management Ltd. Inc., to stop operations after it was accused of being involved in bogus foreign exchange trading and investments.

In a cease-and-desist order (CDO) issued last week, the SEC’s Compliance and Enforcement Division said Sherman was the subject of numerous complaints from its foreign/clients "who claimed that they had been defrauded of their investments in foreign currency (dollars) in connection with its investment solicitation and foreign securities dealing/brokering activities."

Sherman was the latest in the SEC’s sweeping campaign to curb the illegal market activities of foreign firms which use the Philippines as their base for their global investment racketeering.

Among those previously ordered closed were Multitech Investments, Mendez Prior Europe, Saxon and Swift Inc., Knowle and Sachs Inc., Dukes and Co. Securities Corp., and Muller and Sons Securities Management.

The SEC said that like the other firms, Sherman has not been issued any secondary license to act as broker/dealer in securities. Likewise, it is not authorized to solicit investments from the public as its article of incorporation as approved by the SEC do not show the inclusion of such business purpose.

Sherman’s primary purpose is to engage in marketing consultancy to persons, firms, associations, corporations, partnerships and other entities necessary in meeting the objectives of the enterprise such as product development, marketing promotions, advertising, corporate imaging and product launching and designs. – Conrado Diaz Jr.

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