The Securities and Exchange Commission (SEC) said over the weekend it filed a criminal complaint against the group of casino junket operator Hector Aldwin Liao Pantollana for allegedly soliciting investments from the public without license.
It said it filed a complaint with the Department of Justice on May 31, 2024 against Philippine National ESports League, Horizon Players Club and Team Z for alleged violations of several provisions under the Securities Regulation Code (SRC), and Anti-Money Laundering Act, as amended (AMLA).
These firms, all headed by Pantollana, are not registered as corporations with the SEC and have no secondary license that would authorize them to conduct investment solicitation activities from the public, it said.
The corporate regulator, in its complaint, implicated the alleged leaders of the casino junket operations (CJO)—Zeus Liao Pantollana, Reymond Lacsamana Galang, Quarry Quieng and Erwin Bangalan.
Also implicated were those who participated in the investment-taking activities of the Pantollana group.
It said that based on the investigation conducted by SEC Enforcement and Investor Protection Department, the group allegedly engaged in soliciting investments from the public to finance their casino junket operation and casino financing activities.
The group allegedly issued loan contracts to investors with a promise of guaranteed profit ranging from 60 percent to 111 percent per annum, with the payment of profits and return of capital guaranteed by postdated checks.
“Hector Pantollana’s CJO scheme masquerading as a mere contract of loan and secured by postdated checks is clearly an investment contract and undoubtedly, further an evidence of indebtedness. Therefore, a security within the purview of [the SRC],” the complaint read.
The SRC prohibits the sale or distribution of securities without a registration statement duly filed and approved by the SEC.
The SEC said any violation of the provisions of the SRC is considered an unlawful activity or a predicate offense for money laundering under the AMLA.