The Securities and Exchange Commission (SEC) has filed a criminal complaint against New Seataoo Corp. and Seataoo Information Technology OPC for soliciting public investments without the required license. The complaint, submitted to the Department of Justice, also implicated several key individuals, including officers Anna Rose Jangao Tero, Jonathan Tuazon Garcia, and others associated with the company.
The SEC alleges that Seataoo offered an unregistered investment scheme disguised as a dropshipping e-commerce platform. Investments ranging from P20,000 to P2.3 million, were promised returns of 7 percent to 12 percent on their investments, as well as a 3 percent referral commission for recruiting new investors. Seataoo marketed the scheme through social media platforms and influencers to attract participants.
Upon investigation, the SEC determined that the funds invested were actually securities, and that Seataoo’s actions were in violation of the Securities Regulation Code (SRC), which mandates the registration and licensing of securities offerings. The SEC also said Seataoo’s operations were deceptive, masking their investment solicitation as an e-commerce opportunity.
This case highlights the growing regulatory scrutiny of online investment schemes and reinforces the SEC’s position that offering unregistered securities constitutes both fraud and a breach of the law. The SEC had previously revoked the licenses of both Seataoo entities in 2023 and denied their appeal in December of that year.
In addition to the SEC’s actions, the Cybercrime Prevention Act may also apply, as the scheme was promoted through digital platforms, potentially increasing penalties for those involved.
