Updated April 27, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - The Securities and Exchange Commission (SEC) has issued a cease-and-desist order (CDO) against Crown Regency Holiday International Inc., Fuente Triangle Realty Development Corp., Megatrend Realty Network Inc. and Boracay Multiple Properties Developers Inc. for selling investment contracts to the public without the regulator’s consent.
In an order dated March 26, the SEC said the CDO remains in effect until the requisite registration statement is filed and approved.
The companies were told to explain within five days from receipt of the order why the CDO should not be made permanent.
The CDO also covers the sale of preferred shares of Boracay Multiple.
The issuance of the CDO followed an investigation conducted by the Compliance and Enforcement Department in response to a memorandum issued by the Corporation and Finance Department, which supervises the registration of securities
The four firms were found to have been distributing brochures and documents such as management and profit sharing agreement, investment reservation application form and contract to sell without the necessary license in violation of the Securities Regulation Code.
The CED also found out that the four corporations were involved or connected with the project as developer and owner of the property situated at Bgy. Balabag, Central Boracay, Aklan.
According to the CED, the group’s investment package” involves not only the sale of preferred shares of Boracay Multiple which represent a specific condotel unit at Boracay Crown Regency but at the same time partakes of the nature of an investment contract wherein the money invested is placed in a common enterprise and the investor is led to expect profits from the efforts of others.
“Respondents’ act of offering and selling securities to the public, through the distribution of flyers, brochures, the conduct of presentations and placing of advertisements in the Internet also constitute public offerings,” the commission en banc said. – Zinnia Dela Peña