MANILA, Philippines – The Securities and Exchange Commission has revoked the registration certificate of DFG Group Inc. and Fletcher’s Group for misrepresentation and failure to comply with reportorial requirements.
At the same time, the SEC sought the inclusion of the two firms’ incorporators in its watchlist. They are Dionisio Garcia Figueroa, Luis Garcia, Josefina Bernal, Ricardo Mercado, Florencio Montemayor III, Bernardo Florendo, Violeta Etrata, Rafael Chera, Conrado Tiongson and Leonardo Desales.
DFG and Fletcher’s were registered with the SEC on Feb. 13, 2006 and June 28, 2006, respectively, to “own, develop, sell and lease real estate of all kinds, including buildings, houses, apartments and other structures.”
The cancellation of the two firms’ certificates of registration stemmed from a letter sent by the US SEC seeking assistance in conducting an investigation into Fin AXA Settlements, which is alleged to be part of an international boiler-room fraud that could be operating in the Philippines.
In its letter, the US SEC said FinAXA contracts investors who have purchased worthless shares from other boiler rooms and tells them that there will be a pending takeover or similar corporate event of the company in which the investors own shares and or the investors’ shares are now worth large amounts of money.
According to the US SEC, an investor who sends money to FinAXA for the advance fee is defrauded of the entire payment because the proposed securities transaction is never consummated.
The SEC’s investigation showed that DFG and Fletcher’s “falsified their Articles of Incorporation by making use of false or Fictitious addresses of their respective principal offices and of their incorporators.
“DFG and Fletcher’s could not be located at their stated principal office address...Various affidavits indicate that the addresses of the incorporators of DFG and Fletcher are false because they have fictitious house streets and/or house/building numbers or were never occupied by such incorporators.
In addition, both companies have not filed any of the required general information sheet and audited financial statements.