SEC cracks down on Silverlion investment scam

The Securities and Exchange Commission (SEC) continues its crackdown against unauthorized investment schemes as it busted the operations of Silverlion Livestock Trading Corp. in Zamboanga City.

In a joint operation on November 26, the combined forces of the SEC Zamboanga Extension Office (ZEO) and the National Bureau of Investigation (NBI) Region IX successfully implemented a search warrant against Silverlion in its offices at Apolinario Loop, Guiwan and Green Valley National Highway, Brgy. Manicahan, both in Zamboanga City.

The Zamboanga City Regional Trial Court Branch 15 issued the search warrants against Silverlion for violations of Section 8.1, 26, and 28 of Republic Act No. 8799, or the Securities Regulation Code (SRC), in relation to Republic Act No. 10175, otherwise known as the Cybercrime Prevention Act of 2012.

The SEC ZEO and NBI Region IX were able to seize bundles of cash, vouchers, and other device in Silverlion’s office, which were supposedly scheduled to be used for the upcoming payout of profits to its existing investors.

The SEC ZEO filed criminal cases for violation of the SRC against Silverlion’s incorporators, officers and agents identified as Ryan Cagod Ladoing, Renan Lara Ladoing, Rosemarie Alvarez Guzman, Neña Ewayan Algoy, John Paul Dellara Lopez and Michael Villalobos Berja before the inquest prosecutor of the Office of the City Prosecutor of Zamboanga City.

Ryan Ladoing has also been involved in the investment scam RGS World Marketing, which was the subject of a cease-and-desist order (CDO) and advisory issued by the SEC earlier this year.

Upon application by the Enforcement and Investor Protection Department, the Commission En Banc on November 17 issued a CDO against Silverlion, enjoining the group to stop soliciting investments from the public without the necessary licenses from the Commission.

The CDO was simultaneously served on the company together with a show-cause order issued by the EIPD, directing the company to explain why its registration as a corporation should not be revoked for serious misrepresentation as to what it can do or is doing to the great prejudice of or damage to the general public.

Investigations by the SEC ZEO showed that Silverlion had been offering and selling investment packages to the public with guaranteed returns of 35% within just 15 days. With this, investments ranging from P1,000 to P100,000 could yield returns worth P1,300 to P130,000, respectively.

The scheme involves the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC.

Section 8 of the SRC provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

The SEC continues to be more proactive in its fight against illegal investment-taking activities. This year, the SEC has already issued 82 advisories against groups and individuals found to be soliciting investments from the public without the necessary license from the Commission.

Earlier this month, the Commission also issued an advisory against Frutas Comida Zamboanga, another unauthorized investment scheme in the region, in an effort to stop the public from investing in the group.