The Securities and Exchange Commission has canceled the corporate registration of Silverlion Livestock Trading Corp. for soliciting investments from the public without the required license.
In an order dated January 5, the SEC’s Enforcement and Investor Protection Department (EIPD) revoked the certificate of incorporation of Silverlion for violation of Revised Corporation Code of the Philippines.
The SEC said Silverlion’s activities constituted serious misrepresentation of what it can actually do to the prejudice of or damage to the general public, which is a ground for the revocation of its corporate franchise under Presidential Decree No. 902-A.
Silverlion also does not have the required secondary license to offer or sell securities, the SEC said in the order.
Investigations by the EIPD and SEC Zamboanga Extension Office revealed that Silverlion had been offering and selling investment packages to the public with guaranteed returns of 35 percent in just 15 days.
Under this, investments ranging from P1,000 to P100,000 supposedly yield returns worth P1,300 to P130,000, respectively.
Silverlion’s scheme involves an investment contract whereby a person invests his money in a common enterprise and told to expect profits primarily from the efforts of others, according to the EIPD.
By law, investment contracts must be registered with the SEC before these may be sold or offered in the Philippines.
“The scheme being offered by Silverlion Livestock Trading Corp.…promising a return of 2.3 percent per day or 35 percent after 15 days has the characteristics of a Ponzi scheme,” according to the order.
“The investment scheme of also operates to defraud investors as it deceives the investing public by making it appear that they have the authority to deal in securities.”
The revocation of corporate registration followed the successful implementation of a search warrant against Silverlion by combined forces of the SEC and the National Bureau of Investigation (NBI) last year.
The team seized bundles of cash, vouchers and other devices allegedly used for the payout of profits to its investors.
While charges have been filed against Silverlion Livestock Trading Corporation and its officers and agents, its incorporators Ryan Cagod Ladoing and Renan Lara Ladoing remain at large.
