The Securities and Exchange Commission (SEC) said Monday it revoked the licenses of Commodore Agri-Ventures Holdings Corp. (CAVHC) and Champion Lifestyle Global Corp. (CLGC) for soliciting investments from the public without permits.
It said in an order the Enforcement and Investor Protection Department (EIPD) found that CAVHC was publicly offering securities to the public without the necessary license from the commission.
The SEC said that based on its investigation, CAVHC was enticing the public to invest in the company with a promise of 10-percent profit in a span of one to two weeks.
Investors will earn profits without doing anything apart from investing their money in the company.
The agency said that while CAVHC is registered with the SEC, it had not secured a secondary license that would enable it to sell securities to the public as provided under the Securities Regulation Code.
The SEC said CAVHC’s operations could be considered a Ponzi scheme where the profits or payout should be taken from incoming investors or additional pay-ins of existing members. The company also does not have any legitimate business where it could source its promised return on investments to its investors, it said.
Meanwhile, the SEC also revoked the license of CLGC for “serious misrepresentation of what it can do to the great prejudice of damage to the general public”, which is ground for the revocation of the corporation’s primary franchise of certificate of registration under Presidential Decree 902-A.
The SEC said it found CLGC to engage in the sale of motorcycles, which is in not in line with it primary purpose stated in its registration papers with the SEC, which is to engage in the business direct selling of food franchise, food supplement, wellness and beauty.
It said CLGC is only allowed to engage in business as provided under its articles of incorporation and is prohibited to operate an investment-taking scheme.
