Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, said the investigation was spurred by reports that Everflow has been selling shares to the public without prior SEC approval.
Everflow, which transacts its business at the ground floor of the Electra House building in Legaspi Village, Makati, is reportedly owned by spouses Felix and Iris Aquino. It also operates under the name of Sun Ocean International Management and Everflow Holdings Inc.
Based on initial reports, Everflow has been promising investors a monthly interest of 10 to 15 percent for a minimum placement of P50,000 for a period of three to six months plus the return of their investment at the end of the holding period.
The SEC said the investments contracts issued by Everflow to investors fall under the src’s definition of securities and should, therefore, have been registered with the Commission prior to distribution to the public.
An investment contract is defined under the src as a "contract, transaction or scheme… whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others."
Other companies being investigated by the SEC are ICS Exports Inc. and Glasglow Credit and Collection Services. ICS is in hot water for having allegedly duped some 5,000 investors, mostly policemen and soldiers through the same investment scheme employed by Everflow and Glasgow. About P1.5 billion in investments are now believed to be in the hands of ICS officers, headed by a certain Emilia Sison.
Aside from Emilia, other listed incorporators of ICS are Ireneo Sison, William Sison, Mimosa Zamudio and Mirasol Aguilar.
Based on its incorporation papers filed with the SEC, ICS’ business license is limited to exporting garden decors, fashion accessories, agricultural products, leather goods and food supplements.
To ensure the protection of the investing public, the SEC is now preparing the issuance of a CDO against the corporation. A group of 50 investors with total placements ofP800 million, has filed a complaint with the SEC in the hope of recovering their money.
The victims, mostly from Metro Manila and some from Bicol, Mindanao and Northern Luzon, were promised an interest rate of up to seven to eight percent per month for a period of six months. They invested between P100,000 and P200,000 each.
Syquia said the SEC is looking at 20 other companies that have similar operations as ICS and Glasgow. He refused to divulge the identities of these firms pending completion of the investigation, which is being conducted in tandem with the Bangko Sentral ng Pilipinas and the Department of Trade and Industry. – Zinnia dela Peña