SEC revokes incorporation of Ponzi-like Silverlion Trading

MANILA, Philippines — The Securities and Exchange Commission (SEC) voided the registration of Silverlion Livestock Trading Corp. as the company had the makings of a Ponzi scheme following investigations that it solicited investments without a license.

The SEC’s Enforcement and Investor Protection Department (EIPD) revealed Silverlion’s scheme involved securities in the guise of an investment contract. The unwilling victim would be told that they should expect profits from this contract. 

Investigations by the EIPD and SEC’s Zamboanga office found that Silverlion offered and sold investment contracts with guaranteed returns of 35% within 15 days. Investments range between P1,000 to P100,000.

“The scheme being offered by Silverlion Livestock Trading Corp.…promising a return of 2.3% per day or 35% after 15 days has the characteristics of a Ponzi scheme,” the SEC said. 

As it is, investment contracts must be registered with the SEC before being sold or offered. 

The SEC said Silverlion is looking to defraud would-be investors since the company portrayed itself as an entity authorized to issue securities. 

The company, as it turned out, did not have a secondary license issued by the SEC, which is required if a company planned to sell or offer securities to the public. 

That said, the regulator revoked the certificate of incorporation of Silverlion for violating Section 44 of the Revised Corporation Code of the Philippines following an order on Jan. 5.

“Silverlion’s activities constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree No. 902-A, according to the order,” the statement read. 

The SEC began investigating the company last year. It slapped a search warrant against Silverlion, which yielded seizures of cash, vouchers, and other devices used to pay existing investors. 

The regulator already issued a cease and desist order against Silverlion on Nov. 17, 2022, which sought to stop the company from soliciting investments.

A month later, the regulator filed a criminal case against Silverlion. Implicated were chief executive officer Ryan Cagod Ladoing, incorporator Renan Lara Ladoing and officers and agents Rosemarie Alvarez Guzman, Neña Ewayan Algoy, John Paul Dellara Lopez and Michael Villalobos Berja.

Incorporators Ryan Cagod Ladoing and Renan Lara Ladoing remain at large, the SEC said.