The Securities and Exchange Commission (SEC) said Tuesday it secured the conviction of the operators of Emgoldex Philippines Inc. who were found to be selling investment contracts to the public without a necessary license.
It said Branch 157 of the Regional Trial Court of Pasig City, in a decision dated Oct. 1, 2024, found Prosperous Infinite Holdings Phils. Corp. (PIHPC), incorporator and director John Rafael Calicdan and corporate secretary Ryan Manuit guilty beyond reasonable doubt of violating Sections 8.1 and 28 of Republic Act No. 8799 otherwise known as the Securities Regulation Code (SRC).
PIHPC is the operator of Emgoldex Philippines.
Manuit and Calicdan were sentenced to imprisonment of up to 10 years and pay a fine of P500,000 each.
The case stemmed from SEC’s investigation of Emgoldex Philippines, which was found to be engaged in the online solicitation of investments through investment contracts without the necessary approvals from the commission.
Under the scheme, investors were encouraged to put in at least P36,500 in its gold investment program, in exchange for guaranteed earnings of up to P182,500. Investors were also required to recruit at least two more people to make similar investments.
Sections 8.1 and 28 of the Securities Regulation Code provide that the securities offered to the public should be registered with the SEC, and that the person selling such securities should also be registered as a broker or dealer.
“Although the articles of incorporation of PIPHC bore the signatures of both accused Calicdan and Manuit, they denied being the incorporators of the company and merely averred that they signed the same without understanding its consequences, which is highly unlikely given their participation in the operations of the corporation after its incorporation,” the court held.
“Thus, there can be no doubt that both accused participated in recruiting investors and in the activities of the PIPHC when it dealt with securities without any registration or license from the SEC,” it said.
