The complaint was lodged on Oct. 10 with the Department of Justice, charging the business owner, Elaine Joy Zapata Silva, with multiple violations of the Securities Regulation Code (SRC), the Cybercrime Prevention Act, the Financial Products and Services Consumer Protection Act (FCPA), and the Anti-Money Laundering Act (AMLA).
Silva allegedly solicited investments ranging from P2 million to P4 million, promising monthly returns of 7 to 10 percent, through the company’s Facebook page.
“Publicly offering and selling said investment contracts without a license or approval from the SEC is not only illegal per se but would also operate as a fraud or deceit upon any person,” the SEC complaint read.
"[T]he boldness of [Bulacan Ukay Ukay and Silva] to offer or sell securities to the public despite the fact that she knew fully well that [they] do not possess the requisite license or permit from the SEC, is an act constituting fraudulent transaction punishable under Section 26 of the SRC,” it added.
Investigations by the SEC’s enforcement and investor protection department (EIPD) found that Silva was operating without the required registration or license from the SEC.
The SRC prohibits the sale of securities without proper approval, carrying penalties of up to P5 million in fines or 21 years of imprisonment.
The FCPA further classifies such activities as investment fraud. Persons found violating provisions of the SRC may be charged with money laundering under the Anti Money-Laundering Act (AMLA).
The case was filed following an entrapment operation in Guiguinto, Bulacan on Oct. 9, carried out by the Philippine National Police Anti-Fraud and Commercial Crimes Unit alongside the SEC’s EIPD.
