THE Securities and Exchange Commission (SEC) has issued a cease-and-desist order against SPAV Solutions Corp., which is doing businesses under the names Emporia Institute or Emporia.
The regulator also issued separate advisories against Crypto-stakers.com and Trust Legacy International Community PH for their respective investment-taking activities.
In an issuance dated Dec. 14, the SEC handed a halt order against SPAV Solutions “as it operates as a fraud to the public, which if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public.”
SPAV Solutions is registered as a domestic corporation with company registration number CS201815812 in July 2018. Meanwhile, Emporia Institute, Inc. is not registered with the SEC while S&A Enterprises, Inc. had its registration revoked in August 2006.
The SEC issued an advisory against SPAV Solutions in August last year, telling the public to exercise caution when dealing with individuals or groups soliciting investments for the company.
SPAV Solutions’ amended articles of incorporation specifically state that the company “shall not solicit, accept or take investments/placements from the public neither shall it issue investment contractions.”
“Immediately after its incorporation, respondents James Sumilang and Neilbert Abella operated SPAV Solutions by making it appear to the public that the corporation is engaged in a foreign currency trading business, and enticed the public to invest therein,” the SEC said in its issuance.
The commission’s Enforcement and Investor Protection Department (EIPD) received several inquiries about the unauthorized investment programs of SPAV Solutions. At least nine individuals also filed complaints against the entity, which prompted its investigation.
The EIPD found that SPAV Solutions’ investment business works like a mutual fund, where pooled investments will be traded for at least one trading cycle of three months. Investors can invest for as low as P20,000 and the net return was “conservatively pegged” at 10% monthly.
SPAV Solutions also executed and entered into Percentage Allocation Money Management Services, among its other investment schemes.
The EIPD found that while SPAV Solutions is registered with the commission, it does not have the required secondary license to act as a lending company, broker and/or dealer of securities, investment adviser of an investment company, investment house, and transfer agent, neither do Emporia Institute and S&A Enterprises.
BusinessWorld reached out to Mr. Sumilang and SPAV Solutions Director Marian Hannah Louise P. Vailoces via LinkedIn for comment, but they have yet to respond as of press time.
CRYPTO-STAKERS AND TRUST LEGACY INTERNATIONAL
Meanwhile, in separate advisories dated Jan. 6, the SEC is warning the public against unregistered entities Crypto-stakers and Trust Legacy International for their unlicensed investment-taking programs
The SEC said Crypto-stakers is operated by individuals using different pseudonyms, such as Mark Jorrel Chavez, Marc Jeff Hofilena, Imalyn Espinosa, Lovely Sheymandani, Danilyn Corpuz, Hanilyn Arce Doquioag, Carina C., and Esmeralda R.
Crypto-stakers is trying to lure the public to invest in its program with a guaranteed 8% daily payout for 25 days or a 100% return of investment within 25 days for a minimum of P1,000. This is on top of referral bonuses.
The SEC warns that Crypto-stakers’ investment scheme “shows indication” of a possible “Ponzi scheme” wherein the earnings of older investors are derived from the investments of newcomers.
On the other hand, Finland-based Trust Legacy International “claims to be an automatic online investment platform” that is engaged in Bitcoin Trading.
It offers “Bitcoin Doubler” and “Daily Bitcoin” investment programs, enticing the public with a lofty 200% revenue after 35 or 100 days. Investments are coursed through the UnionBank and GCash accounts of a certain “John Paul Atos.”
Trust Legacy International is not registered with the SEC and it is also not a registered virtual asset service provider with the Bangko Sentral ng Pilipinas (BSP). It does not have a certificate of authority as a money service business (MSB) needed under the guidelines for virtual asset providers of the BSP.
Trust Legacy International is also not on the list of registered MSBs with the Anti-Money Laundering Council under the Anti-Money Laundering Act.
BusinessWorld tried to reach out to both entities for comment. However, Crypto-stakers’ Facebook group can no longer be accessed, while Trust Legacy International’s website just leads to the login page of the entity. — Keren Concepcion G. Valmonte
