The warning was issued by the SEC following reports that the company allegedly continues to illegally solicit investments from the public.
The SEC pointed out that the order issued by the Eighth Division of the Court of Appeals allows the reopening of Phil-Asia’s principal office and the resumption of its business activities only if it has complied with the SEC requirement on the transfer of its principal office."
"As of date, Phil-Asia has not complied with the condition set by the court to allow reopening of its principal office and resumption of its business activities. The public is therefore warned to take the necessary precautions before entering into transactions with the company," the SEC said.
The SEC earlier filed before the Makati Fiscal‚s office a criminal complaint against the incorporator-directors of Phil-Asia, headed by its president Vicente Afulgencia.
The filing of the criminal complaint is in line with the SEC’s thrust to rid the pre-need industry of unscrupulous agents and corporations.
Phil-Asia tried but failed to stop the implementation of the cease-and-desist order issued against it by the SEC as the Court of Appeals ruled in favor of the Commisson.
In junking the petition for certiorari, the Appellate Court rejected Phil-Asia’s allegation that SEC committed grave abuse of discretion when it issued an order prohibiting the company from further selling pre-need plans to the public.
On the strength of the SEC order, the City Legal Officer of the Business Permit and Licensing Division of Pasig City withdrew the business permit of Phil-Asia and closed and padlocked the firm’s main office.
The issuance of the closure order was spurred by complaints that Phil-Asia continued selling pre-need plans to the public and collecting amortizations from planholders despite the issuance of the CDO.
Phil-Asia has no pre-need plan available for sale since 1993. It has not licensed dealers since 1996 and has no authority to operate a branch.
Since the company failed to comply with the SEC requirements, Phil-Asia had been prohibited from selling new pre-need plans. It was only authorized to service existing planholders from Dec. 23, 1993.