SEC issues CDO vs 4 firms selling unlisted securities

Hot on the heels of illegal investment solicitors, the Securities and Exchange Commission has issued a cease and desist order against four corporations, led by Five Vision Consultancy Inc., for non-registration of securities.

Among the other firms covered by the CDO are Intercontinental Services Inc., Conrad Group and Associates Inc. and Servlink Cargo Inc.

In an order released last week, the SEC’s Compliance and Enforcement Department (CED) alleged that the respondent-corporations, in connivance with one another, engaged in the unauthorized sale of securities to the public in violation of the Securities Regulation Code.

Under the SRC, no securities shall be offered to the public without prior registration with the SEC.

Five Vision’s scheme is similar to the other schemes employed by Multinational Telecom Investors Corp. (Multitel), the Mateo Management Group, and the Tibayan Group of Companies which promise high monthly interests on a minimum placement of P50,000.

Based on CED’s investigation, Five Vision offers a guaranteed monthly interest of 15 percent for a minimum investment of P50,000 or $1,000 over a three-month period. It issues post-dated checks for the principal amount invested and for the monthly interest of three months.

The guaranteed interest return is allegedly generated from Five Vision’s foreign currency trading activities at Saxobank in Denmark.

According to the CED, Five Vision has used the three other corporations to continue its unlicensed activities to avoid detection by the authorities. The firm had been placed under investigation by the SEC as early as last year but no charges were brought forward against the company because it promised to cease operations.

"The sworn statements, receipts, contracts, vouchers and checks presented show that contrary to Five Vision’s representation that they were willing to dissolve due to alleged past infractions, they have in fact continued to solicit and accept investments from the public," the CED said.

The respondent corporations were given five days from receive of the order to file a formal request to lift the CDO.

They are also allowed to make settlement offers as provided under Section 55 of the Securities Regulation Code.

Under the said provision, parties being investigated and/or charged may propose in writing an offer of settlement with the Commission. The SEC may only agree to a settlement offer based on its findings that such settlement is in the public interest.

The SEC said the CDO should not prevent the respondent corporations from returning the investments made by various individuals.

Hoping to improve their financial position, thousands of individuals have been lured into these get-rich quick schemes. Most of the victims of these schemes are retirees and the middle-income earners.