Tibayan Group faces criminal charges

The Securities and Exchange Commission is set to file a criminal complaint against The Tibayan Group of Companies Inc. for selling unregistered securities in violation of the Securities Regulation Code.

The new complaint is in addition to the earlier cases filed by the SEC against The Tibayan Group for falsification of documents and violation of the Investment Company Act.

"We are now preparing the complaint and we hope to file it within the next two to three weeks. We’re just in the process of attaching the evidence," an SEC official said.

To ensure the protection of the investing public, the SEC has permanently shut down the operations of the Tibayan Group for "flagrantly" violating the SRC and submitting misleading documents.

In junking the motion for reconsideration filed by The Tibayan Group, the SEC said the erring company failed to present any sufficient ground or basis to lift the cease-and-desist order.

The CDO was issued to the group’s mutual fund unit Tibayan Group Investment Company Inc. and 11 affiliates for selling unregistered securities and promising investors a fixed return on their investments.

Under the scheme, the group offered three-to 5.5-percent interest a month for a term ranging from six months to one year. An investor would receive seven post-dated checks representing the interest and principal. The monthly interest, on the other hand, is deposited to the bank account of the investor.

According to the SEC, the group used numerous front corporations and partnerships to solicit investments from the public, thus circumventing the rule which requires prior registration of securities for issuance to over 19 individuals.

Among the companies covered by the CDO are TG Asset Management Corp., Matcor Holdings Co. Ltd., Jetcor Equity Co. Ltd., Sta. Rosa Mgt. and Trading Corp., Westar Royalty Mgt. and Trading Corp., Starboard Mgt. and Trading Corp., United Alpa Mgt. and Trading Corp., Global Progess Mgt and Trading Corp., Athon Mgt. and Trading Corp., Diamond Star Management & Trading Corp., and Tibayan Management Group International Holdings Co. Ltd.

All these companies are either owned or controlled by businessman Jesus Tibayan.

Instead of operating as a mutual fund, TGICI engaged itself in the selling of investment contracts without license from the SEC. Under the SRC, no securities can be sold to the public unless registered with the Commission.

The SEC is now readying revocation proceedings against the respondent corporations.

The investigation was spurred by numerous queries from the public about the legality of the operations of The Tibayan Group.

The SEC has advised investors to group together and file a class suit against The Tibayan Group to minimize litigation costs.

The Tibayan Group earlier said the CDO had adversely affected its other business operations including its appliance store, hardware store, restaurant and fire extinguisher distribution unit. The CDO had also resulted in the pretermination of investments by the public.