The Securities and Exchange Commission (SEC) successfully secured the conviction of key individuals behind Prosperous Infinite Holdings Phils. Corp. (PIHPC), the operator of the controversial Emgoldex Philippines investment scheme. In a ruling dated 1 October 2024, Branch 157 of the Regional Trial Court of Pasig City found PIPHC incorporator and director John Rafael Calicdan and corporate secretary Ryan Manuit guilty of violating the Securities Regulation Code (SRC).
Both Calicdan and Manuit were sentenced to a prison term of up to 10 years and each ordered to pay a fine of ₱500,000. The court determined that the duo was involved in soliciting investments without the required license from the SEC, violating regulations intended to protect investors from fraudulent schemes.
The case originated from an SEC investigation into Emgoldex Philippines, which solicited investments in a gold trading program without the proper registration. The scheme encouraged individuals to invest at least ₱36,500 in exchange for guaranteed returns of up to ₱182,500. Investors were also required to recruit new members, creating a pyramid structure of 15 investment slots.
PIHPC’s articles of incorporation identified both Calicdan and Manuit as incorporators but both denied involvement in the company’s founding. However, the court dismissed their claims, noting that their active roles in the operations of PIHPC and continued solicitation of investments after its name change to Global Intergold — and later back to PIHPC — proved otherwise. The company was also found to have operated under unregistered business names, further violating securities laws.
The SEC had previously issued a cease-and-desist order against Emgoldex, which later rebranded as Global Intergold. Despite the order, the operators continued their illegal activities, operating without the necessary license to sell securities.
The conviction sends a strong message to other businesses engaged in unregistered investment schemes, underscoring the importance of SEC oversight in maintaining investor protection.
