THE Securities and Exchange Commission (SEC) and the Philippine National Police (PNP) cracked down on a group called GDM Finance Sarl, which the corporate regulator found to be soliciting investments illegally.
On Nov. 24, operatives of the SEC’s Enforcement and Investors Protection Department (EIPD) and the PNP arrested 12 people, namely Hen Yanchao, Josephine Delgado Maranan, Milany Peligro Cabrera, Nanette Diaz Tongco, Joy Camille Andaya Pural, Anita Egana Armada, Virgilio S. Castillo, Denmark V. Salazar, Jacinto Lucio P. de Catalina, Jay Nasayao Moral, Gerald Lansangan Samson, and Venancio Gacus Mendoza.
They also identified a Pastor Benny Cabrera who managed to escape the authorities.
Those arrested were found to be conducting an investment-solicitation session in Holiday Inn, Pasig City under GDM Finance Sarl, an investment firm based in Switzerland. They supposedly encouraged attendees to investment in the firm, promising a weekly interest of 2.5-4.5% from the money that will be invested in preferred shares at the New York Stock Exchange.
“The SEC-EIPD in its initial investigations, found that GDM Finance Sarl had not been issued a Certificate of Authority to Operate as Lending Company or a Financing Company,” the SEC said.
The commission noted that such violations could carry a maximum penalty of P5 million, or imprisonment of 21 years or both at the court’s discretion, as per Section 28 of the Securities Regulation Code (SRC).
The SEC-EIPD said it has already filed criminal charges against the arrested persons for violating the SRC. — Arra B. Francia
