Vol. XXII, No. 137 [ BusinessWorld Online ]
Thursday, February 12, 2009 | MANILA, PHILIPPINES
THE SECURITIES and Exchange Commission (SEC) has ordered a Parañaque-based sports club to stop the unauthorized sale of membership certificates to the public.
In a notice posted on its Web site on Tuesday, the corporate watchdog said it had issued a cease and desist order on Nomad Sports Club, which had been selling membership certificates, which the SEC considers a form of securities, in the absence of a permit.
The commission said it had received two complaints against the sports club in July and August alleging that it was also planning to sell bonds worth P30 million.
In a telephone interview, Nomad Treasurer Matthew Freeston denied the charges against the club. "We are not and never have been selling securities," he said, alleging that the SEC complaint had been initiated by members who wanted to sell the land where the club stands and have it developed as a condominium. He said their group was still reviewing how it would respond to the SEC order.
Meanwhile, the SEC also warned the public against buying pre-need plans from Phil-Asia Care Plans, Inc., saying the company has no permit.
The commission said its approval of Phil-Asia Care’s capital hike last year did not mean it had been authorized to sell pre-need plans.
The pre-need firm still has pending cases for selling unregistered securities and falsification of documents. It added that Phil-Asia’s license to sell pre-need plans had been revoked in 1993, while its dealership permit had been recalled in 1996. — DGKC
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