CA lifts PowerHomes from SEC ban

The Securities and Exchange Commission was restrained from implementing its order to stop a property-marketing firm from selling or offering to sell "securities."

A temporary restraining order from the Court of Appeals clears the way for PowerHomes Unlimited Corp. to continue its business operations which primarily train, promote and facilitate sale of real estate properties and allied products of real estate developers.

This Court of Appeals issued the TRO on the cease and desist order issued earlier by the SEC, effectively overturning and superseding the alleged permanent CDO as reported in the papers.

In a decision penned by the Court’s Tenth Division, the Justices gave weight to the "existence of urgency and irreparable injury" and for the protection or reservation of the right of the respondent pending final resolution of the matter.

Meanwhile, the Department of Trade and Industry advised its provincial directors (PD) to refrain from issuing statements not supported by facts about Prosperity.com.

In a memorandum to all regional directors dated May 8, 2001, Undersecretary Nelly Favis-Villafuerte of the Regional Operations Group said, "In their eagerness to disseminate information, our Provincial Directors (PD) may through oversight be issuing our statements not supported by facts."

The memorandum was a reaction to press releases from DTI’s regional and provincial offices which came out in various newspapers warning Visayan consumers to steer clear of two companies.

Prior to that some newspapers linked the companies to pyramiding schemes as attributed to the Bureau of Trade Relations and Consumer Protection. This was, however, denied by BTRCP saying that they did not name any company and that they just gave their opinion to the SEC as to what can be considered pyramiding.

Villafuerte reminded them that while the issues raised are still being evaluated and deliberated upon by the SEC and by the courts the PDs should be advised to refrain from issuing statements against Prosperity.com.

Earlier, Prosperity.com challenged its competitors and those spreading "black propaganda" against the company that it will not hesitate to prosecute these entities and haul them to Court if necessary as the barrage of negative publicity continues to take its toll on the company’s operations.

In a statement, Prosperity.com’s legal counsel Chan Robles & Associates said they will be pursuing legal proceedings against those engaged in the "illegal act of destroying, vilifying and maligning" the company, its owners and officers."

The law firm said the slew of black propaganda against Prosperity.com could have stemmed from the company’s huge success in its Internet-based sales and marketing operations, which have spawned several other businesses of similar nature.

The company says it now has about 50,000 subscribers or website owners since starting the business late last year.