The Securities and Exchange Commission (SEC) said it filed a criminal complaint against New Seataoo Corp. and Seataoo Information Technology OPC including their officers for offering investments to the public without the required license.
The SEC said it filed a case filed before the Department of Justice on Jan. 16, 2025, after receiving complaints from several investors that claimed they invested amounts ranging from P20,000 to P2.3 million due to an expectation of returns from the group.
Upon investigation, the Seataoo Group was found to be offering securities in the form of investment contracts through its “dropshipping e-commerce platform” scheme.
Under the scheme, the Seataoo Group entices potential investors to become an online seller on its platform with the requirement that they deposit money in order to process orders.
The investors are promised with a profit ranging from 7 percent to 12 percent of the amount they invested.
It also offers an affiliate program where existing investors or online sellers get a 3 percent referral commission.
“This scheme affirms that the deposited funds are in reality, investments, since they are not limited to transactional payments directly tied to specific purchases. In fact, complainants demand for the return of their investments plus profits,” the complaint read.
“This mandatory funding of individual accounts required of Seataoo’s members/online sellers is a device used by Seataoo to mask its offer/sale of unregistered securities, and obtain investments from the public without having to secure the requisite license from the Commission,” it said.
The SEC charged New Seataoo, Seataoo OPC and its officers and agents with violation of Section 8.1 of Republic Act (RA) No. 8799, or the Securities Regulation Code (SRC), in relation to Rules 3.1.17 of its 2015 implementing rules and regulations, Sections 26.3 and 28 of the SRC, in relation to Section 6 of RA No. 10175, or the Cybercrime Prevention Act of 2012, Section 11 in relation to Section 3(f) of the Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).
The SEC also implicated New Seataoo officers and agents namely Anna Rose Jangao Tero, Jonathan Tuazon Garcia, Danny Tuazon Sudaria, Lew Yean Yee, Seow Kai Sheng, Dylan Lim, and Seataoo OPC’s single stockholder, Jayson Corono Clidoro.
The SRC prohibits the selling or offering of securities to the public without the requisite registration statement duly filed with and approved by the SEC.
It also requires the issuer to secure a permit to sell securities, and its agents to be registered with the commission.