The Securities and Exchange Commission has ordered a Cebu-based company to cease soliciting investments
The Securities and Exchange Commission (SEC) has ordered a financial consulting business and its associate entities to cease soliciting money under the pretext of an investment platform for purported gaming, medical supply, and export companies.
The Securities and Exchange Commission (SEC) ordered Royal O’ Consultancy Services, a one-person corporation (OPC) based in Mandaue City, Cebu, to immediately cease selling and/or offering securities in the form of investment contracts until they have filed and obtained the necessary license, according to a statement released on September 2, 2021.
The firm was also prohibited from depositing money in its depository institutions and transferring any connected assets to guarantee their preservation for the benefit of impacted investors, according to the corporate regulator.
Royal O’s affiliate entities Oromagnet International EGames, Plasmatech Medical Supplies Trading, and Princess Joana Jo Alfajid Foundation, as well as its owner and CEO Princess Joana Jo Alfajid Campos and president Gretchen Aguas, are all covered by the SEC order.
Representatives, salespeople, solicitors, agents, uplines, facilitators, and influencers are all included in the hierarchy.
Royal O’ was found to be offering and selling securities without obtaining a secondary license from the SEC, prompting the agency to issue the order.
Depending on the amount an investor is prepared to contribute, Royal O’ provides two investment plans.
With a three-month contract, an investment of PHP5,000 to PHP499,000 would provide a daily return of 3%, or 201 percent in 67 days.
An investor who invests PHP500,000 to PHP10 million may expect a 60 percent monthly return or 360 percent over six months.
Members-investors may also profit by bringing in other individuals to the program, where they will be paid an extra 6% for direct referrals and downlines.
The money raised from the general public is then allegedly invested in Campos’ numerous companies, including Oromagnet and Plasmatech.
Securities may not be sold inside the Philippines until a registration statement has been submitted with and authorized by the Securities and Exchange Commission, according to Section 8 of Republic Act 8799, or the Securities Regulation Code.
Royal O’ was first registered with the Department of Trade and Industry as Royal O’ Financial Consultancy Services, and then with the Securities and Exchange Commission as an OPC.
Records indicate, however, that it has never obtained a secondary license from the Commission as a securities issuer or broker-dealer, nor has it ever registered any securities for public sale under the SRC.
The SEC issued advice on Feb. 5, 2021, as well as an investor alert on its official Facebook page on Feb. 10, 2021, warning the public against investing in Royal O’.