The Securities and Exchange Commission (SEC) has cancelled the corporate registrations of Procap International and Ray International Philippines Corp. who were caught illegally soliciting investments from the public.
The SEC revoked Procap’s certificate of incorporation for soliciting investments from the public and issuing investment contracts in clear violation of the Revised Corporation Code of the Philippines.
The SEC said the company sold securities in the form of investment contracts and policy plans, promising investors 0.2 percent up to 1.4 percent guaranteed daily income.
The watchdog agency said this has the characteristics of a Ponzi scheme where the earnings of early investors fund the investments of new investors.
In October last year, the SEC and other law enforcement agencies conducted an entrapment operation in an event Procap organized in a Makati hotel. This led to the arrest of 20 individuals, including company directors, incorporators, agents and employees.
The SEC first issued a cease and desist order (CDO) against the company in February this year.
Ray International, which does business under the name and style of Ray Education Directions Consultancy Services, Be Unrivaled Productions and Sine Cordillera, was similarly found soliciting investments without SEC approval.
The company offers programs for real estate agents, property saver or buyer-investor with the promise of guaranteed income of up to P61,000 ver 24 months, depending on the investment.
It also promotes a partner-financier program for passive investors where investments ranging from P300,000 to P10 million generate income of P108,000 up to P3.6 million in only 12 months.
The SEC in June last year issued a CDO against Ray International, Casa Infini Builders and Realty Co. Ltd., Casa Infini Realty Management Co., Ltd., and Casa Infini Properties and Development Corp. whose incorporators hold controlling positions in the company.
