In a notice to the public, the SEC said MTST Holdings is not registered with the Commission as a corporation nor as a partnership and, therefore, has no legal personality. This means that the company is not licensed to engage in the business of soliciting investments from the public.
"In order to avoid a possible repeat of the difficulties experienced by investors in the ICS Export case, Exsior case and Glasgow et. Al cases, the public is advised to take whatever legal actions necessary to protect their investments," the SEC said.
The SEC said it has also advised the Department of National Defense on the matter since MTST’s operations are located within Villamor Air Base.
The warning was issued by the SEC in view of the increasing queries from the public about MTST, whose investment scheme is similar to that being employed by Glasgow Collection and Services Corp., ICS Exports and Exsior.
These firms have been promising investors monthly interest of as much as 15 percent for a minimum placement of P50,000 for a period of six months plus the return of their principal investments at the end of the holding period. Investments of less than P50,000 were promised the same terms and conditions with a slightly lower interest rate of 10 percent a month for the same period.
Upon signing of the contract, these firms would issue seven post-dated checks to the investor covering the six monthly interest payments and the principal.
ICS Exports caught the attention of regulators for offering sky-rocketing returns in just a short period of time. About P1.5 billion in investments are now believed to be in the hands of ICS officers, headed by a certain Emilia Sison.
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.
The SEC said earlier it was looking at 10 to 15 more other psuedo-investment companies. The investigation is in joint coordination with the Bangko Sentral ng Pilipinas and the Department of Trade and Industry.
The move was spurred by inquiries from various investors about the activities of these companies. Likely victims are retirees who want to earn big and quick bucks.