Glasgow pressed to pay P10-million penalty

Glasgow Credit and Collection Services Inc. is being pressed by the Securities and Exchange Commission to immediately pay the assessed penalty of P10 million for unauthorized sale of securities to the public in violation of the Securities Regulation Code.

The company was issued a cease-and-desist order by the SEC for offering to the public investment contracts without prior registration with the corporate watchdog.

Based on the SEC’s investigation, the investment contracts issued by Glasgow fall under the SRC’s definition of securities and therefore should 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."

Section 8.1 of the Securities Regulation Code provides that no security shall be sold to the public unless a registration statement has been filed and duly approved by the SEC.

The SEC has yet to hear the side of Glasgow but the company had previously sought the reduction of the fine to P1 million which was denied by the Commission.

The Pasig Prosecutors Office had earlier recommended the criminal prosecution of the owners and directors of Glasgow for having allegedly committed large-scale estafa in violation of the Revised Penal Code.

Among the company’s owners include Manuel Roldan Jr., Radiacion Badias, Jenilyn Condes, Roldan Estacio, and Jonathan Condes.

The Pasig Prosecutor has elevated the case to the Pasig Regional Trial Court. The bail recommended for each respondent is P40,000.