THE Securities and Exchange Commission (SEC) has filed a criminal complaint against Bulacan Ukay Ukay Direct Supplier for allegedly offering investments to the public.
The entity has allegedly violated Sections 8, 26, and 28 of Republic Act (RA) No. 8799, or the Securities Regulation Code (SRC), in relation to relevant provisions of RA No. 10175, or the Cybercrime Prevention Act; RA No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA); and RA No. 9160, or the Anti-Money Laundering Act (AMLA), the commission said in an e-mailed statement on Wednesday.
The complaint was filed with the Justice department on Oct. 10.
According to the SEC, the complaint was filed after an entrapment operation by the Philippine National Police Anti-Fraud and Commercial Crimes Unit and the SEC Enforcement and Investor Protection Department (EIPD) in Guiguinto, Bulacan on Oct. 9.
The commission said the entity’s owner and sole proprietor was reportedly soliciting investments ranging from P2 million to P4 million, with supposed returns of 7% to 10% monthly, through social media.
Investigations by the EIPD also showed that the entity was allegedly soliciting investments from the public without the necessary registration and license from the SEC.
The SRC forbids the sale or distribution of securities without an SEC-approved registration. Violators will face a fine of up to P5 million, or imprisonment of up to 21 years, or both.
The Cybercrime Prevention Act raises the penalty for crimes committed with the use of information and communications technologies by one degree higher.
Meanwhile, the FCPA classifies the deceptive solicitation of investments to the public as investment fraud, while persons found violating provisions of the SRC may be charged with money laundering under the AMLA. — Revin Mikhael D. Ochave