The SEC asked the Anti-Money Laundering Council (AMLC) last week to unfreeze the bank accounts of the firm. Some 9,000 creditors of Glasgow Credit and Collection Services, Inc. also started receiving last week payments for close to 80 percent of the firm’s outstanding obligations.
Glasgow president Manuel Roldan Jr. said the firm has begun paying out some P696 million representing its total liquid assets deposited in five banks. The payout is scheduled to be completed over a 15-day period.
According to Rosalie Ignacio, a major Glasgow creditor, the move by the SEC "has done a lot to calm the public and further strengthen their confidence" in the regulatory agency.
The ongoing payment of Glasgow creditors established a first of sorts as the firm becomes the first to pay back its creditors among several firms issued a cease-and-desist orders (CDO) by the SEC in the wake of its crackdown on small investment operations.
"We are happy that the SEC has helped us recover a major portion of our claims," Ignacio said. This is very important considering that investors in boiler-room firms have yet to recover a single centavo from their so-called investments, she added.
She also cited the public visibility of the corporate officers of Glasgow. Ignacio said their presence "contributed to the absence of panic among the firm’s creditors".
Meanwhile, Glasgow lawyers said they are no longer pursuing an earlier petition for the SEC to lift the CDO which was issued in July this year following unverified allegations that the firm might have been involved in the sale of securities. The firm has, instead, filed an offer to settle.
In the offer, Glasgow said it will voluntarily wind up and permanently stop its operations after ensuring that all creditors have been reasonably paid.
Glasgow underscored, however, that the offer to settle "does not in anyway mean an admission of guilt or liability". The firm pointed out that in contrast to other firms suspected of engaging in the so-called Ponzi scheme, Glasgow has not been remiss in the payment of its creditors, nor has it engaged in pyramiding.
Glasgow also hailed the SEC for its vigilance in the drive versus illegal investment schemes "so that the industry could be cleaned up and legitimate firms could prosper."