Another investment scamming operator sued

BAGUIO CITY (February 8, 2025) -- The Securities and Exchange Commission (SEC) sued New   Seataoo  Corporation  and   Seataoo  Information  Technology, OPC (Seataoo OPC), including its officers, for reportedly soliciting investments without the required license.

The SEC formally charged before the Justice department New  Seataoo,  Seataoo  OPC,  and  its  officers  and  agents  with violation  of  Section  8.1  of  Republic  Act  (RA)  No.  8799,  or  the  Securities Regulation Code (SRC), in relation to Rules 3.1.17 of its 2015 Implementing Rules and Regulations, Sections 26.3 and 28 of the SRC, in relation to Section 6 of RA No. 10175, or the  Cybercrime Prevention  Act of 2012, Section 11 in relation  to  Section  3(f)  of  the  Republic  Act  No.  11765,  or  the  Financial Products and Services Consumer Protection Act (FCPA).

The SEC also implicated New Seataoo officers and agents-- Anna Rose Jangao  Tero, Jonathan Tuazon Garcia, Danny  Tuazon Sudaria, Lew Yean Yee,  Seow  Kai  Sheng,  Dylan  Lim, and  Seataoo  OPC’s  single  stockholder, Jayson Corono Clidoro.

The Securities Regulation Code, according to the SEC, prohibits the selling or offering of securities to the public without the requisite registration statement duly filed with and approved by the government regulatory agency. It also requires a permit to sell securities is secured with SEC, likewise its agents registered with them.

Earlier, complainants against the Seataoo Group  sought the SEC  after they were enticed to invest based on advertisements found  on  social  media  platforms  such  as  Facebook  and  Youtube.   They claimed they invested amounts ranging from P20,000 to P2.3 million, expecting return of investments.

According to the SEC, the Seataoo Group was found to be offering securities in the  form  of  investment  contracts  through  its  “dropshipping  e-commerce platform” scheme,

where potential investors are enticed to become an online seller on its platform with the requirement that they deposit money in order to process orders.

The investors are promised with a profit ranging from 7% to 12% of the amount they invested.

It also offers an affiliate program where existing investors or online sellers get a 3% 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 complaint read.

“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 added.

The  Seataoo  Group’s  public  offering  and  selling  of  investment  contracts without license likewise constitutes fraud or deceit upon any person, which is prohibited under Section 26.3 of the SRC, the SEC ruled.

Earlier  on  June  10,  2024,  SEC issued  an  order  of  revocation against the New Seataoo Corporation and Seataoo Information Technology OPC revoking their certificates of registration for violations of Section 44 of RA No.  11232,  or  the  Revised  Corporation  Code  of  the  Philippines  (RCCP), Sections 8.1, 26.1 and 28.1 of the SRC, Section 11 of the FCPA, P.D. 902-A in relation to Section 179(j) of the RCCP and Section 5.1 of the SRC.

New Seataoo Corporation and Seataoo Information Technology contested the revocation of its license with the SEC but the Commission en banc of the SEC ruled against the former for lack of merit on December 26, 2024.

SEC meanwhile warned that the Cybercrime Prevention Act raises by one degree higher the penalty imposed  for  a  crime  committed  through  information  and communication technologies.