SEC scores another victory vs erring lending firms

MANILA, Philippines — The Securities and Exchange Commission has scored another major victory against erring lending companies.

The SEC said it secured the conviction of six officers of Manak Pur Lohara Lending Corp. for falsifying documents in support of the lending company’s registration with the commission.

The Regional Trial Court of Pasay City in a decision dated March 11 found officers of Manak Pur Lohara Lending guilty beyond reasonable doubt for violation of the Lending Company Regulation Act of 2007 (LCRA).

A criminal complaint was earlier filed by the SEC against the officers of Manak Pur Lohara Lending after finding that they submitted false statements in their application for the incorporation of the company.

The SEC said the group submitted a certificate of bank deposit amounting  to P1 million, purportedly issued by Banco de Oro-Two Shopping Center Branch in Pasay City, to comply with the minimum paid-up capital prescribed by the LCRA during its registration as a lending company with the commission in 2017.

According to the SEC, this marks the 11th conviction scored by the commission for violation of the LCRA, with a total of 92 individuals already convicted.

The SEC has, likewise, secured two judgments of conviction under the Revised Penal Code, with a total of 12 individuals convicted.

The commission has cancelled the licenses of 39 financing or lending companies to date due to various violations of applicable rules and regulations.

A total of 58 online lending applications have also been ordered to cease operations for lack of authority to operate as a lending or financing company.

The SEC has likewise revoked the primary registration of a total of 2,084 lending companies to date for non-compliance with the LCRA.