Despite being registered as a corporation, DNKC was not authorized to operate investment schemes, yet it promoted an “all-in-one business project” promising a 4.5 percent return plus a 5 percent referral bonus.
DNKC operated under various names such as KC Skin Care, JD’s Grill and Restaurant, DNKC Dental Spa, and others.
The SEC’s Enforcement and Investor Protection Department (EIPD) found the firm’s actions violated multiple laws, including the Revised Corporation Code, the Securities Regulation Code, and the Financial Products and Services Consumer Protection Act.
“Hence, the act of [DNKC] in soliciting investments from the public without the necessary secondary license from the Commission is unauthorized,” the SEC order stated.
The commission imposed a P1 million fine and ordered another P1 million in administrative sanctions against DNKC and its incorporators.
The SEC also declared the firm’s investment activities fraudulent, saying it misrepresented its corporate powers.
