SEC clamps down on lending officers

MANILA, Philippines — The Securities and Exchange Commission (SEC) has earned another win against lending company officers using falsified documents for their registration.

The SEC said five officers of All-in 7,000 Lending and Trading Corp. have been convicted for falsifying documents required for their registration with the commission.

Branch 47 of the Metropolitan Trial Court of Pasay City in a decision dated June 25 found the five company officers guilty of violating Article 172(1) of the Revised Penal Code on the falsification of public documents by a private individual.

They were sentenced to imprisonment for a minimum period of one year and a maximum of two years and two months as well as a fine of P5,000 each.

A complaint has been lodged by the SEC against the incorporators, officers and stockholders of All-in 7,000 Lending for submitting a falsified document for their company registration.

According to the SEC, the lending firm submitted a certificate of bank deposit purportedly issued by Banco De Oro Pasay-Two Shopping Center Branch as part of its registration with the commission in 2017 to prove that it has a paid-up capital of P1 million.

The corporate regulator, however, found that the submitted certificate of bank deposit was falsified and was not issued by the bank or the manager upon verification.

“The accused, knowing or having ought to know fully well that the bank certificate is a requirement, and that their corporation does not have the money to put up the same, their reliance on fixers to procure such certification necessarily negates their excuse or purported lack of knowledge over the falsification of the certificate of bank deposit, thereby making them liable for the act,” the court said.

The SEC said the decision marks the third conviction it secured under the Revised Penal Code, bringing the total of individuals convicted to 17.

In addition, it has scored 11 convictions for the violation of the Lending Company Regulation Act of 2007 with 92 individuals convicted.

To date, the SEC has cancelled the licenses of 39 financing/lending companies due to various violations of applicable rules and regulations.