The Securities and Exchange Commission has revoked the corporate registration of Infinity8Networks Digital Services OPC plus a fine of P1 million for illegally soliciting investments.
The SEC’s Enforcement and Investor Protection Department found that Infinity8Networks violated the Revised Corporation Code of the Philippines which prohibits the exercise of corporate powers other than those conferred by law or by its articles of incorporation.
While Infinity8Networks is registered as a one-person corporation, it has not secured prior registration and license for the conduct of a public offering. Its articles of incorporation also prohibits the company from conducting investment-taking activities.
As consequence, the EIPD directed Infinity8Networks and its incorporator and nominees to pay a fine of P1 million as provided under the SRC.
The SRC provides that securities be registered with the SEC before they may be offered to the public. Entities offering such securities must likewise secure the necessary license from the Commission.
Under Presidential Decree 902-A, the SEC may suspend or revoke the registration of a corporation for serious misrepresentation as to what it can do or is doing to the prejudice of or damage to the general public.
The SEC also warned the public not to invest in Terramush Inc. which has not secured a secondary license for its investment products.
The company represents itself as a platform to educate Filipinos on the financial and health benefits associated with mushrooms. It distributes a variety of mushroom fruit bags, allowing members to simultaneously profit from its purchase, its president and CEO, Raphael G. Tablizo, claimed, the SEC said.
As posted online, one may invest as low as P300 under a 64-day lock-in period in return for which is a promised 2.5 percent daily income.
The SEC said Terramush’s certificate of registration only grants it juridical personality to a partnership but does not authorize the company to issue, sell or offer for sale to the public, securities such as shares of stock, investment contracts, debt instruments and virtual currencies without prior registration approved by the Commission.
“Furthermore, there is no official memorandum of agreement coming from any SEC attorney as claimed by Terramush Co. The said claim may have been used to deceive the public that they are authorized to solicit investments from the public, when in fact they are not,” the SEC said.
