The Department of Justice (DOJ) has filed criminal charges against executives of Cebu-based Fergus Inc. for allegedly soliciting investments from the public without the required government license.
In a resolution dated September 29, the DOJ found enough evidence to indict company president Jefferson M. Acas Jr. and corporate secretary and finance chief Rosemarie V. Mayorga for violating the Cybercrime Prevention Act.
Prosecutors affirmed the Securities and Exchange Commission’s (SEC) findings that Fergus had been selling investment products without securing the necessary secondary license to operate as a securities broker or dealer.
The case began after the National Bureau of Investigation (NBI) looked into complaints raised by an Australian law firm whose clients said they were defrauded by Fergus. The NBI asked the SEC to verify the company’s activities, leading to the discovery that Fergus was offering investment contracts through an automated trading software.
According to the DOJ, Fergus claimed to sell e-books bundled with trading software, but investigators found no proof these materials existed. Instead, the company allegedly promoted an automated trading system promising passive income for a minimum investment of $250, supposedly capable of making market decisions on behalf of customers.
Authorities said this constituted investment fraud, as Fergus had no SEC license to offer or sell investments. While the firm is registered with the SEC as a business process outsourcing provider, its corporate documents explicitly prohibit it from accepting public investments or issuing investment contracts.
