SEC may revoke Tibayan’s permit to sell securities

The Tibayan Group Investment Co. Inc. (TGICI), the mutual fund unit of the controversial Tibayan Group of Companies, may lose its permit to sell securities to the public for failing to appear at yesterday’s hearing set by the Securities and Exchange Commission (SEC).

An SEC official said the Office of the General Counsel is now considering revocation proceedings against TGICI for non-cooperation with the Commission. The official said an order will be issued this week or next week to alert the public of actions the SEC has taken or will take against the Tibayan Group.

She said the order will make the cease-and-desist order earlier issued to the Tibayan Group permanent to prevent them from further defrauding the public.

The SEC had already asked the Department of Justice to issue a hold-departure order against the owners and officers of the Tibayan Group to prevent them from fleeing the country and to hold them responsible for damages incurred to investors and for violations of the securities law.

Based on SEC records, listed as owners of TGICI are Jesus Tibayan, Palmy Tibayan, Ezekiel Martinez, Liborio Ejacio, Jimmy Catigan, Nelda B. Baran, and Rico Puerto.

The request for the issuance of the CDO comes in the heels of a plan to file a criminal complaint against the Tibayan Group for violation of the Securities Regulation Code and for syndicated estafa.

The complaint is expected to be filed by the end of this month. The SEC is currently consolidating all the complaints filed by investors, estimated at over 10,000.

The Tibayan Group was issued a CDO for selling unregistered securities and illegally promising investors a fixed return on their investment, which is not supposedly a feature of mutual funds.

Apart from TGICI, other firms covered by the CDO are TG Asset Management Corp., Matcor Holdings Company Ltd., Jetcor Equity Company Ltd., Sta. Rosa Mgt. And Trading Corp., Westar Royalty Mgt and Trading Corp., Starboard Mgt and Trading Corp., United Alpa Management and Trading Corp., Global Progess Mgt and Trading Corp., Athon Management and Trading Corp, Diamond Star Management & Trading Corp., and Tibayan Management Group International Holdings Co. Ltd.

The Tibayan group offered three to 5.5 percent interest a month for a term ranging from six months to one year. An investor would receive seven post-dated checks, representing the interest and principal. The monthly interest, on the other hand, is deposited to the bank acccount of the investor.

According to the SEC, the group allegedly used numerous front corporations and partnerships to solicit investments from the public, thus circumventing the rule which requires prior registration of securities for issuance to over 19 individuals.

The investigation was spurred by numerous queries from the public about the legality of the operations of the Tibayan Group.

Investors of the Tibayan Group have been complaining about bouncing checks since November last year.

The Tibayan Group is the latest in a string of pseudo-investment scams that have victimized thousands of investors through the promise of high monthly interests and the use of high pressure sales techniques. The yields are significantly higher than the four to five percent annual rate offered by commercial banks.