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Richmond Mercurio - The Philippine Star
February 4, 2025 | 12:00am
MANILA, Philippines — In its continuing efforts to protect investors from illegal investment schemes, the Securities and Exchange Commission (SEC) has filed a criminal complaint against an entity operating a dropshipping e-commerce platform.
It also warned the public against dealing with a Laguna-based cosmetics and skin care company.
The SEC filed the complaint against New Seataoo Corp. and Seataoo Information Technology OPC for soliciting investments from the public without the necessary license from the commission.
The SEC has filed a complaint before the Department of Justice, charging New Seataoo, Seataoo OPC, its officers and agents with violating the Securities Regulation Code (SRC).
The SEC said that complaints were filed with the commission by the public who were supposedly enticed to invest in the Seataoo Group based on advertisements found on social media platforms such as Facebook and YouTube.
Expecting returns from the group, the investors claimed that they invested amounts ranging from P20,000 to P2.3 million.
Investigation by the SEC showed that the Seataoo Group was found to be offering securities in the form of investment contracts through its dropshipping e-commerce platform scheme.
Under the scheme, the SEC said that the Seataoo Group entices potential investors to become an online seller on its platform with the requirement that they deposit money in order to process orders.
Investors are promised a profit ranging from seven percent to 12 percent of the amount they invested.
An affiliate program is likewise offered where existing investors or online sellers get a three percent referral commission.
“This scheme affirms that the deposited funds are, in reality, investments, since they are not limited to transactional payments directly tied to specific purchases. In fact, complainants demand for the return of their investments plus profits,” the SEC said.
“This mandatory funding of individual accounts required of Seataoo’s members/online sellers is a device used by Seataoo to mask its offer/sale of unregistered securities, and obtain investments from the public without having to secure the requisite license from the Commission,” it said.
The SEC said that the Seataoo Group’s public offering and selling of investment contracts without license likewise constitutes fraud or deceit upon any person.
According to the commission, the SRC prohibits the selling or offering of securities to the public without the requisite registration statement duly filed with and approved by the SEC.
The SRC also requires the issuer to secure a permit to sell securities and its agents to be registered with the commission.
In June last year, the SEC issued an order of revocation against New Seataoo and Seataoo OPC.
A decision in December last year by the Commission En Banc denied the memorandum of appeal of the foregoing order of revocation filed by New Seataoo and Seataoo OPC for lack of merit.
Meanwhile, the SEC has issued an advisory against an unnamed Laguna-based cosmetics and skincare company which has scammed multiple investors, including teachers.
“It has come to the attention of the SEC that a number of investors, including teachers, have fallen victim to an investment scam by a cosmetics and skincare company operating in Laguna,” it said.
The commission is urging those who were victimized to file a complaint and submit any information that will help it build a case against the individuals and groups behind the investment scam.
