Another investment scamming operator sued
Art Dumlao — February 9, 2025
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.
