This is because under the terms of the settlement offer Glasgow presented to the Securities and Exchange Commission (SEC), the repayment of all its investors/creditors is conditional on the lifting of the freeze order issued by the Anti-Money Laundering Council (AMLC) on the accounts held in its four depository banks.
"The lifting of the freeze order is necessary considering that the payments to the creditors will come from these accounts," Glasgow’s lawyers said in their manifestation.
Glasgow’s lawyers said while the company’s funds are intact in the various depository banks – HSBC, RCBC, CityState Savings Bank and International Export Bank – these cannot be touched unless the AMLC says so. But in the meantime, the company has reportedly drafted the payment scheme in preparation for the lifting of the freeze order.
Aside from Glasgow, other accounts in the freeze order include those of Glasgow official Manuel Roldan Jr. and two other related companies: Strasbourg International Corp. and New Castle International Corp. There was no mention of ICS Exports Inc., another company which duped its investors of more than P1 billion through the same fund solicitation scheme but has since mysteriously gone unaccounted for.
Last Wednesday, the SEC made its cease-and-desist order (CDO) against Glasgow permanent as the firm volunteered to cease its operations and offered to settle its obligations, but without admitting any liabilities in the charges that it has engaged in the unlicensed sale of investment contracts using the illegal pyramid scheme.
The SEC issued the CDO against Glasgow last Friday on complaints it has been selling investment contracts without license and luring clients on "get-rich-quick" schemes by reportedly giving a huge 15 percent monthly interest on six-month money placements of between P10,000 to P50,000.
The issue landed in the headlines not only due to the number and amount of investments involved, but also due to the involvement of a number of high-ranking police and military officials, who even reportedly drew loans from the AFP-Savings and Loan Association Inc. to finance their investments.
The AMLC subsequently ordered the freeze on the bank accounts of Glasgow while verifying the accusations that the firm and its officials are involved in the illegal money-making scheme. Except for the bank account, Glasgow has failed to pinpoint where the rest of the money invested by its creditors have gone.