The Securities and Exchange Commission said Monday it revoked the registration papers of Boracay Capital Holdings Inc. (BCH) over alleged several violations, including serious misrepresentation and non-filing of reportorial requirements.
The SEC, in an order dated Sept. 4, said BCH failed to submit reportorial requirements. including general information statement, annual financial statement as required by the Securities Regulation Code (SRC).
It said the company was also found to be offering investment opportunities to the public without license from the SEC.
The SEC said that based on information it gathered, BCH enticed the public in their scheme initially through posting in social media accounts with assurance and promises of high-yielding dividends, passive income and diversified investment products.
BCH is engaged in real estate including hotel and resort and information technology products based on the company’s incorporation papers.
The SRC prohibits the selling of unregistered securities to the public.
“Thus undoubtedly, the representations displayed in the social media platforms such as Facebook and over the company’s website showcasing its alleged accomplishments to entice the public to join or invest in the company constitute solicitation and therefore formed part of the whole scheme of Boracay Capital to fraudulently offer unregistered securities to the public,” the SEC said in an order.
“Such invitation to offer or sell securities to the public without the corresponding registration with the commission is illegal and is punishable by law pursuant to Section 8 in relation to Section 73 of the SRC,” the order said.
The SEC said the decision is part of its ongoing efforts to enforce regulatory compliance and uphold market integrity within the country’s financial sector.
