THE Securities and Exchange Commission (SEC) has cancelled the corporate registrations of Procap International and Ray International Philippines Corp. for illegal solicitation of investments.
Procap International, its president and nominees were also directed to pay P1 million as administrative sanction.
In its order, the SEC said Procap was found soliciting investments from the public and issuing investment contracts.
The company is selling securities through policy plans, promising investors 0.2 to 1.4 percent guaranteed daily income depending on their chosen policy, the SEC noted.
“In October last year, the SEC, along with other law enforcement agencies, conducted an entrapment operation against Procap during an event it organized in a hotel in Makati City due to its illegal investment solicitation activities. This led to the arrest of 20 individuals including its directors, incorporators, agents and employees,” the SEC said.
The SEC subsequently issued a cease and desist order (CDO) against the company in February this year.
The SEC said Procap’s operation “has the characteristics of a Ponzi scheme wherein the earnings of early investors are funded using the investments of new investors.”
Meanwhile, Ray International, which does business under the names and styles of Ray Education Directions Consultancy Services, Be Unrivaled Productions and Sine Cordillera, was likewise found offering programs to become a real estate agent and property saver or buyer-investor with a promise of guaranteed income of up to P61,000 for 24 months, depending on the investment.
It promotes becoming a passive investor as a partner-financier for an investment ranging from P300,000 to P10 million, with a total income of P108,000 up to P3.6 million in 12 months, the SEC noted.
The SEC said it issued a CDO against Ray International in June last year along with other companies, such as Casa Infini Builders and Realty Co. Ltd., Casa Infini Realty Management Co. Ltd. and Casa Infini Properties and Development Corp., where its incorporator also holds controlling positions.
