MANILA, Philippines — The Securities and Exchange Commission (SEC) has filed charges against a supplier of used goods in Bulacan for allegedly soliciting investments without a proper license.
In the complaint, the SEC said that public offering and selling of investment contracts without approval from the regulatory body is not only illegal, but also constitutes fraud.
The SEC said it filed criminal complaints before the Department of Justice against Elaine Joy Zapata Silva, owner of Bulacan Ukay Ukay, for violation of Republic Act 8799 or the Securities Regulation Code (src).
It said Silva was soliciting investments amounting to P4 million and promising investors up to 10 percent in monthly returns.
The SEC said Silva was offering the investment through the Facebook page of Bulacan Ukay Ukay.
The src prohibits the sale of any and all securities without a SEC-approved registration.
The law penalizes people who employ schemes to defraud the public into falling for these illegal investments.
Violators face a fine of up to P5 million or imprisonment of up to 21 years, or both.
Aside from fraud, Silva is facing charges for violating the Cybercrime Prevention Act.
Silva may face stiffer sanctions for using an internet platform to sell investments.
The SEC included in the complaint possible violation by Silva of the Financial Products and Services Consumer Protection Act as well as the Anti-Money Laundering Act, which provides that a person who violates the src may be charged with money laundering.