Glasgow investors not on SEC list may still get their money back

Investors of Glasgow Collection and Services Inc. who have yet to get their principal investments back will have something to look forward to as the company has authorized the Securities and Exchange Commission (SEC) to pay even those that are not on the SEC list of claimants.

SEC Chairperson Lilia R. Bautista said Glasgow has given SEC the authority to pay 450 Glasgow investors who were not included on the SEC list. She did not say how much would be returned to the investors.

Glasgow has started paying around 9,000 investors after the SEC asked the Anti-Money Laundering Council to unfreeze the funds of the company in five banks. The payment involves close to P700 million and is expected to be completed this month.

Only investors whose names are on both the lists of SEC and Glasgow got their money back.

Glasgow became the first company to have been issued a cease-and-desist order (CDO) by the SEC in the wake of its crackdown on companies selling unregistered securities. The firm was fined P13.5 million for violation of the Securities Regulation Code.

Glasgow offered interest rates between 10 and 15 percent for six month-placements of P50,000. Upon signing of the contract, Glasgow would issue seven post-dated checks to investors covering the six monthly payments and the principal.

SEC said the investment contracts issued by Glasgow fall under the SEC’s definition of securities and should therefore have been registered with the commission prior to distribution to the public.

An investment contract is defined under the SEC as a "contract, transaction or scheme… whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others."

Glasgow has voluntarily offered to wind up and cease its operations to avoid a protracted litigation which could adversely affect the firm’s over 9,000 investors.

SEC officials said Glasgow was willing to settle the fine in exchange for the dropping of charges against the company, its officers and owners.

The SEC earlier said it was considering filing a criminal complaint against Glasgow officers to make them answerable for all the losses incurred by investors.

Shareholders of Glasgow include Manuel Roldan Jr., Radicion Baldia, Jenilyn Condes, Jonathan Condes, and Roldan Estacio.