Powerhomes ordered to return money of investors

The Securities and Exchange Commission (SEC) has ordered Power Homes Unlimited Corp. to immediately return the investments of its over 100,000 members and to refrain from holding seminars or trainings which are intended to attract more investors.

Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, said the failure of Powerhomes to comply with their directive will result in the immediate closure of the marketing firm’s operations.

"Failure to comply with this directive, we shall be constrained to take all necessary measures to enforce the immediate closure of your operations," Syquia said in an order dated Aug. 28.

Powerhomes was also directed to immediately stop from soliciting new investments, whether in the Philippines or outside, to avert further damage to the investing public.

The directive was issued by the SEC following the lifting by the Court of Appeals of an injunction order against the imposition of the cease-and-desist order on Powerhomes

Syquia said that with the lifting of the injunction order, the SEC can now enforce its CDO unless Powerhomes is able to secure another restraining order or the CA overturns its decision.

Powerhomes legal counsel Hubert Guevara earlier said the company would exhaust all legal means to prevent the SEC from closing down its operations. He said Powerhomes would cite the SEC in contempt if it insists on implementing the CDO and closing down the firm.

"Legally speaking, that position is flawed unless they can show legal basis they can pursue it. They can not execute a decision which has not attained a finality. We will file a motion to hold them for contempt. We will go to the court and bar their course of action," Guevara said.

Under Powerhomes sales scheme, members were given the opportunity to own real estate such as a house and lot package in exchange for $234 in enrollment fee. With the enrollment fee, the investor now becomes a business center owner (BCO).

Upon enrollment and completion of training, the BCO is awarded his/her own business center in the form of an Internet website wherein he can recruit other members for a fixed income.