BAGUIO CITY – The Securities and Exchange Commission (SEC) has revoked the certificate of registration of PHILBIO Renewable Energy Resources Corp. “for selling securities in the form of investment contracts without a secondary license.”
The SEC informed Mayor Mauricio Domogan of its decision dated April 27, 2017 annulling the registration of the company which holds business at Gaerlan St. here.
In the decision dated April 27, the SEC under chair Teresita Herbosa said PHILBIO’s act of selling securities without the required secondary license is a violation of section 8of the Securities Regulation Code.
“Also, it misrepresented to the public that it can sell securities despite eh fact that it has no license to do so. Hence, it violated (Presidential Decree No.) 902-A,” the commission said.
The SEC said PHILBIO was offering investment programs through websites wherein an investor can invest P25,000 to P500,000 with a guaranteed 180 percent return of investment per annum or at least six percent per month.
The investment program purportedly deals on the PHILBIO biodiesel business. The incorporators were claiming that the biodiesel refinery plant being built in the city will be the first among the many that will supply biofuel to transport groups in the country. The investments were supposedly for the building of more storage tanks for the fuel.
The company’s activities were subjected to an investigation by the Enforcement and Investor Protection Department on the basis of the statement of one Kathleen Abando who inquired on the legitimacy of the company’s business operations in 2009.
EPD then found that PHILBIO was engaged in the offering and selling of securities in the form of investment contracts without the required registration statement or secondary license. This is despite the fact that in its certificate of incorporation, it was stated that the company is not authorized to undertake business activities requiring a secondary license from the SEC.
The SEC said PHILBIO incurred two violations – the non-registration of securities and its non-registration as a broker or dealer.
“From the foregoing, it is indubitable that PHILBIO misrepresented itself to the public that it can solicit investments despite the fact that it is not one of the purposes of the corporation,
Worse,, it does not have a license to offer/sell securities. PHILBIO operates an investment-taking scheme which is therefore considred as an ultra vires act. These acts constitute serious misrepresentation as to what the corporation can do or doing to the great prejudice to the general public,” the SEC said.
“Due to these severe violations, theCOmmission is constrained to impose the supreme penalty of revocation,” the SEC said.
By Aileen P. Refuerzo