A regional trial court, following a case buildup by the Securities and Exchange Commission (SEC), has convicted five employees of JRL Kwarta Trading Co. for illegally soliciting investments from the public without proper registration.
The Regional Trial Court in San Carlos City found the personalities Maritonie Dela Cruz Padlan, Maria Lyka Resuello Caguioa, Cindy Favia Muñoz, Jericho Caguioa Mateo, and Nelson De Guzman Pagdanganan guilty of violating the Securities Regulation Code (SRC). Each was fined ₱150,000, or ₱50,000 per count, with subsidiary imprisonment in case of non-payment.
The employees entered a voluntary guilty plea, acknowledging the charges and waiving their right to trial. “Considering the spontaneous and voluntary plea of guilt of the five accused to all charges, the court finds no legal impediment to rendering judgment based thereon,” the court said.
The conviction stems from an SEC investigation into a promotional post by JRL Kwarta Trading, owned by Joshua Lacayan, advertising a “profit schedule adjustment” in its investment payouts. The SEC found the firm operating a crypto investment play requiring a minimum ₱30,000 investment, and monthly profits without securing the required SEC registration.
The Enforcement and Investor Protection Department of the SEC coordinated with the Philippine National Police Anti-Cybercrime Group for an entrapment operation on 13 May that led to the arrest of the five employees.
The judgment underscores SEC policy against unauthorized public investment offerings and reaffirms the enforcement of registration requirements under the SRC, aimed at protecting investors from unlicensed and potentially fraudulent schemes.
