THE Securities and Exchange Commission (SEC) said the Department of Justice (DoJ) has filed criminal charges against three entities for soliciting investments from the public without the required licenses.
In a statement on Wednesday, the SEC said the DoJ found sufficient evidence to charge Eton Phil Non-Specialized Wholesale Trading, SCET Colleens Corp., and a group led by a casino junket operator for violations of the Securities Regulation Code (SRC).
“The groups were charged for engaging in unauthorized investment-taking activities without securing the necessary licenses from the SEC,” the corporate regulator said.
Under Sections 8 and 28 of the SRC, entities offering securities to the public must first secure registration and a secondary license from the SEC. Violations carry penalties of up to P5 million in fines and imprisonment of up to 21 years.
For Eton Trading, prosecutors recommended filing cases against its two founders and 12 agents. The company allegedly offered investment contracts for frozen meat products with promised monthly profits of 20% to 50% on placements ranging from P5,000 to P100,000.
The SEC issued a public advisory against Eton Trading in February 2023 and a cease-and-desist order (CDO) in July of the same year.
Meanwhile, the DoJ also recommended filing charges against SCET Colleens and its three directors for multiple violations of the SRC, including 28 counts of fraud related to transactions with investors.
SCET Colleens allegedly offered investment packages with monthly returns of 5% to 8%, and total returns reaching P1.08 million. The SEC earlier issued a CDO against the company in September 2021 and later revoked its registration in 2023.
The third group, reportedly led by a casino junket operator, allegedly solicited investments through unregistered entities — Philippine National ESports League, Horizon Players Club, and Team Z — promising annual returns of up to 111% secured by postdated checks. The SEC issued a permanent CDO against the group in October 2024.
BusinessWorld tried to reach out to the concerned parties for comment, but no public contact information or company profiles were available. — Alexandria Grace C. Magno
