SEC issues permanent CDOs vs 7 companies

The Securities and Exchange Commission (SEC) has issued permanent cease and desist orders (CDOs) against seven website marketing and telemarketing firms.

The seven are Barclays Group Inc. and/or New World Financial Group Ltd., Bradshaw Global Asset Management Inc., Newport Pacific Securities & Management Inc., Sherman Brothers Management Ltd. Inc., Worldwide Investors Management Inc., Powerhomes Unlimited Corp. and Prosperity.com.

The cases of the first five are related to that of Dukes & Co. and Mendez Prior Europe, both of which were apprehended by a combined team of government agents for engaging in boiler room operations.

Boiler room operations normally employ telemarketers who act as brokers and convince mostly foreign clients through high-pressure sales techniques and promises of exorbitant returns on their investments in selling legitimate securities, mainly foreign stocks or bonds, in unregistered transactions.

A boiler room operates with minimal legitimate business activities. Its primary activity is to raise investor funds which will be then pocketed by the principals and telemarketers in the form of commissions, costs and fees.

Several foreign nationals from New Zealand, Australia, Singapore and South Africa have complained to the SEC that they were victimized by these Philippine-based companies. – Conrado Diaz Jr.