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The Securities and Exchange Commission (SEC) has filed a criminal complaint against Bulacan Ukay Ukay Direct Supplier for offering investments to the public without the necessary license. In a complaint filed before the Department of Justice on October 10, the SEC charged the identified owner and sole proprietor of Bulacan Ukay Ukay Direct Supplier, with violation of Sections 8, 26 and 28 of Republic Act (RA) No. 8799, or the Securities Regulation Code (SRC), in relation to relevant provisions of RA No. 10175, or the Cybercrime Prevention Act; RA No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA); and RA No. 9160, or the Anti-Money Laundering Act (AMLA).
The SRC prohibits the sale or distribution of securities without a registration duly filed and approved by the Commission. Persons found guilty of the provisions of the SRC shall suffer a fine of up to P5 million, or imprisonment of up to 21 years, or both. The Cybercrime Prevention Act raises the penalty for crimes committed with the use of information and communications technologies by one degree higher. Meanwhile, the FCPA classifies the deceptive solicitation of investments to the public as investment fraud, while persons found violating provisions of the SRC may be charged with money laundering under the AMLA. The complaint was filed following an entrapment operation conducted by the Philippine National Police Anti-Fraud and Commercial Crimes Unit, together with the SEC Enforcement and Investor Protection Department (EIPD), in Guiguinto, Bulacan on October 9. The EIPD was acting on a report filed against entity owner, which alleged that she was soliciting investments ranging from P2 million to P4 million, with supposed returns of 7% to 10% monthly, through the Facebook page of Bulacan Ukay Ukay Direct Supplier. Investigations by the EIPD later revealed that the entity owner was soliciting investments from the public without the necessary registration and license from the SEC. Under Sections 8 and 28 of the SRC, securities shall not be sold or offered for sale without a registration statement duly filed and approved by the Commission, with the sale of such securities by a company or broker without the proper registration and licenses issued by the SEC expressly prohibited. Meanwhile, Section 26 makes it unlawful for any person to employ any device, scheme, or artifice to defraud the public in connection with the same of securities. “Publicly offering and selling said investment contracts without a license or approval from the SEC is not only illegal per se but would also operate as a fraud or deceit upon any person,” the complaint read.
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