The Commission En Banc affirmed the decision on Dec. 3 against Humanitarian and Spiritual Mission Apostulates of Davao and Asia Inc., HASMADAI Foundation, Inc. and Humanitarian Institute of Technology Corp., rejecting the group’s motion to lift the order.
The SEC initially issued the CDO on May 21 after discovering that HASMADAI Group solicited public investments without a license through branches in the CARAGA Region.
The scheme promised “missionary allowances” of 27 to 34 percent of donations ranging from P5,000 to P20,000, effectively doubling the donor’s money over six months.
Despite HASMADAI’s claim that these were religious donations, the SEC ruled that the payments constituted investment contracts under the Securities Regulation Code (SRC). Section 8 of the SRC prohibits selling or offering securities without proper registration.
HASMADAI argued that it is a religious organization funded by donations and profits from shopping centers. However, the SEC held that members were contributing due to promised returns, not out of goodwill, and dismissed the group’s defense.
