SEC padlocks Prosperity; company officials cry foul

A combined team of Securities and Exchange Commission (SEC) and National Bureau of Investigation (NBI) operatives swooped down and padlocked yesterday the offices of Prosperity.com in Pasig City and its training center at Robinsons Galleria, a move that was questioned by the management of the company.

In addition, the SEC ordered the company to pay a fine of P100,000.

The raiding team was acting on the strength of an SEC order dated May 24 which held Prosperity in contempt for allegedly defying a cease-and-desist (CDO) issued by the corporate regulator last January.

The SEC argued that since the 60-day temporary restraining order issued on Feb. 21 by the Court of Appeals against the implementation of the CDO had lapsed on April 22, the SEC’s CDO had become effective.

It cited a joint affidavit executed by two NBI agents stating that as of April 24, Prosperity is still operating despite the CDO.

In a statement faxed to The STAR, Prosperity.com legal counsel Joselito Chan described the SEC-NBI action as hasty .

He pointed out that the issue raised by SEC officials is just mere contempt and yet the raiding team padlocked the company’s offices even while Prosperity’s appeal is pending before the Court of Appeals.

Chan questioned "the hastiness by which the order was implemented," adding that "the order was issued Thursday and implemented the next day without according Prosperity.com the opportunity to move for reconsideration within 10 days which is provided for under the rules."

He also pointed out that at the time of the implementation of the closure order, the 60-day temporary restraining order issued by the CA has not lapsed, adding that yesterday (May 25) was only the 45th day.

A preliminary injunction before the CA yesterday was postponed when the SEC filed a motion for reconsideration last May 23, the Prosperity lawyer said. "And yet the SEC did not accord p.com the same privilege to file a motion for reconsideration," he added. — Conrado Diaz Jr.