THE Securities and Exchange Commission (SEC) has revoked the incorporation certificate of Elite Alliance Vera Trade System OPC (EAV) due to misrepresentation and for unlicensed selling of securities.
In an issuance, the SEC said EAV had been enticing the public to invest in the company through the entity’s trade system. As reported to the regulator, EAV offered packages for as low as P500 with a promised income of P500 every 15 days for three months.
The packages go as high as P500,000, which promised a passive income of P3 million. Investors were also told that they can earn a 50% direct referral bonus and a 1% bonus from the investors’ referrals from the second level up to the 10th level.
In July last year, the SEC issued an advisory that warned the public against EAV. But even after the advisory, EAV was found convincing its members and investors that it will be granted a secondary license.
In September 2021, the SEC issued an advisory against the fake secondary license that the president of EAV has been posting online.
The regulator added that any one-person corporation or OPC cannot be allowed to solicit investments from the public.
In November 2021, it issued a show-cause order against EAV and tried to serve the order personally, leading to the discovery that the residences indicated in the entity’s articles of incorporation are fake.
“A false address reflected in the Articles of Incorporation is a ground for revocation of corporate registration for fraud in the procurement of registration under PD (Presidential Decree) 902-A,” the regulator said.
According to the SEC, the investment scheme EAV presented as well as the fake secondary license permit it posted online amounts to serious misrepresentation.
EAV is not authorized to engage in the selling of securities to the public as stated in its primary purpose and the SEC considered this as an ultra vires act or one that requires legal authority.
For its violation of Section 44 of the Revised Corporation Code of the Philippines, EAV’s registration as a corporation was revoked, as ordered by the SEC on Monday. — Justine Irish D. Tabile