SEC Secures Conviction Against Illegal Lenders – Manila Bulletin

The Securities and Exchange Commission (SEC) won yet another legal battle over illegal lending with a regional trial court convicting the founders and directors of X-CEE789 Lending and Trading, Inc. for submitting forged documents for its registration .

In a decision dated June 30, branch 118 of the Pasay City Court of First Instance found Merlinda A. Derequito, Mila R. Anonuevo, Haydee S. Alarcon, Maria Collen A. Custodio, Marisa D. Abaquin, Ramona C. Belen, Pinder Kaur Bhopal, Parvesh Kumar, Karan Kumar, Surinder Bhopal, Kamaljit Kaur and Jaswinder Kaur guilty beyond a reasonable doubt of violating the Loan Company Regulation Act 2007 (LCRA).


The court ordered each of the respondents, who formed X-CEE789 as founders and directors, to pay a fine of P 10,000, with costs.

The SEC filed a criminal complaint against the respondents after finding that they had made a false statement in their application to incorporate X-CEE789 and issue its license to operate, as required by the LCRA.

X-CEE789 submitted a bank certificate of deposit in the amount of P 1 million, allegedly issued by the branch of Banco de Oro-Two shopping center in Pasay City, to comply with the minimum paid-up capital prescribed by the LCRA upon its registration as a corporate lender with the Commission in 2017.

Upon verification with the bank, however, the SEC found that no such certificate had been issued to X-CEE789. The Commission subsequently rejected the application to register the company as a loan company.

Article 12, paragraph 3 (a) of the LCRA punishes with a fine ranging from P 10,000 to P 50,000 or imprisonment of at least 6 months but not more than 10 years or both, any officer, employee or agent of a corporate lender who knowingly and willfully make a statement in an application, report or document required by law that statement is false or misleading with respect to any material fact.

“For knowingly and willfully making a false statement in their articles of association and submitting a forged bank certificate of deposit that the law requires loan companies to file, the defendants clearly violated Article 12 (3) (a) of the RA 9474 “, noted the court.

Luis Lopez, who was the former liaison officer of X-CEE786, said that it was his godfather Salvador Dapadap who asked him to obtain a bank deposit certificate from a certain Sarah Jane Ibasco for the request of the ‘business.

Lopez would then pay Ibasco, who allegedly arranged for the filing of the documents to the SEC, P 5,000 in exchange for the bank certificate.

Surinder Bhopal, Haydee Alarcon and Karan Kumar have admitted to signing the articles of association of X-CEE789 indicating that the company has a paid-up capital of 1 million pesos.

Kumar also noted that it was their agreement to pay their capital contribution to their friend, Parvesh Kumar, only after registering the company with the SEC.

“By their own admission, the defendants never made a capital contribution at all… the court said.

He added that “this is a willful violation of the law for which the accused cannot be excused.”

The conviction of the founders and directors of X-CEE789 represents the eighth conviction the SEC has won in a crackdown initiated in 2017 against illegal lenders, including those involved in “5-6” schemes and others. usurious practices.

In the eight cases tried so far, the relevant first instance courts have declared 71 people, including 33 foreigners, guilty beyond a reasonable doubt of having violated the LCRA.

The SEC, through the Department of Corporate Governance and Finance (CGFD), has also revoked the master registration of a total of 2,081 loan companies to date for non-compliance with the LCRA.

To date, the SEC has also revoked the licenses of 35 finance / loan companies due to various violations of applicable rules and regulations. A total of 58 online loan applications were also ordered to cease their activities due to lack of authorization to operate as a loan or finance company.



Comments are closed.