SEC revokes registrations of Procap, Ray International

MANILA, Philippines —  The corporate registrations of Procap International and Ray International Philippines Corp. have been revoked by the Securities and Exchange Commission (SEC) due to their illegal solicitation of investments from the public.

On top of revoking the certificate of incorporation of Procap, the SEC likewise directed the company, its president and nominees to pay P1 million in accordance with administrative sanctions under the Securities Regulation Code.

Under Procap’s articles of incorporation, the regulator said that the company is prohibited from soliciting investments from the public and issuing investment contracts.

However, the commission’s enforcement and investor protection department (EIPD) found the company to be selling securities in the form of investment contracts through policy plans, promising investors 0.2 percent up to 1.4 percent guaranteed daily income depending on their chosen policy.

Procap’s operation was also found by the EIPD as having the characteristics of a Ponzi scheme wherein the earnings of early investors are funded using the investments of new investors.

The SEC, along with other law enforcement agencies, conducted an entrapment operation against Procap in October last year due to illegal investment solicitation activities.

The operation led to the arrest of 20 individuals including directors, incorporators, agents and employees.

A cease and desist order (CDO) was issued against the company last February.

The EIPD has also issued a revocation order against Ray International Philippines for soliciting investments without approval from the SEC.

The company, which does business under the names and styles of Ray Education Directions Consultancy Services, Be Unrivaled Productions and Sine Cordillera, was found to be offering programs for becoming a real estate agent and a property saver or buyer-investor with a promise of guaranteed income of up to P61,000 for 24 months, depending on the investment.

According to the SEC, Ray International also promotes becoming a passive investor as a partner-financier for an investment ranging from P300,000 to P10 million, with a total income of P108,000 up to P3.6 million in 12 months.