An SEC official, who requested not to be named, said the commission is not likely to approve Glasgow’s proposed mode of payment. "The commission wants a shorter period. It should only be for one year," the same official said.
Glasgow offered to pay P3 million in upfront cash and settle the remaining amount over a seven-year period or P1 million per year.
The penalty was imposed by the SEC on Glasgow last year for unauthorized sale of securities to the public in violation of the Securities Regulation Code.
Under Section 8.1 of the src, no security shall be sold to the public unless a registration statement has been filed and duly approved by the SEC.
Glasgow was issued a cease-and-desist order by the SEC for offering to the public investment contracts without prior registration.
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."
Glasgow had previously sought the reduction of the fine to P3 million but this 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.
In justifying its decision, the Pasig Prosecutors Office said all the elements of estafa by means of deceit under Article 315, subdivision 2 (a) of the Revised Penal Code were present.
Among these elements were the following: that the offended party was induced to part with big money or property because of the fraudulent means; that such false pretense was executed prior to or simultaneously with the commission of the fraud; and that as a result thereof, the offended party suffered damage.
Shareholders of Glasgow are Manuel Roldan Jr, Radiacion Badias, Jenilyn Condes, Roldan Estacio, and Jonathan Condes.
The investigation into the case was prompted by the filing of a complaint by a group of six individuals who had invested a total of P1.165 million.