THE SECURITIES and Exchange Commission (SEC) has filed a criminal complaint against New Seataoo Corp. and Seataoo Information Technology One Person Corp. (Seataoo OPC) for soliciting investments without the required license.
The complaint, which also covers the entities鈥 officers, was filed before the Department of Justice on Jan. 16, the corporate regulator said in an e-mailed statement over the weekend.
The SEC said that Seataoo Group was found offering securities in the form of investment contracts through a 鈥渄ropshipping e-commerce platform鈥 scheme.
Investors are encouraged to become online sellers on the group’s platform, with a requirement to deposit money for order processing.
The group promises returns of 7% to 12% on the invested amount. It also offers an affiliate program where existing investors or online sellers earn a 3% referral commission.
鈥淭his scheme affirms that the deposited funds are, in reality, investments, as they are not limited to transactional payments directly tied to specific purchases. In fact, complainants are demanding the return of their investments plus profits,鈥 the SEC said.
鈥淭his mandatory funding of individual accounts required of Seataoo鈥檚 members and online sellers is a device used by Seataoo to mask its offer and sale of unregistered securities, thereby obtaining investments from the public without securing the requisite license from the commission,鈥 it added.
In June last year, the SEC revoked the certificates of registration of New Seataoo Corp. and Seataoo Information Technology OPC for violating the Revised Corporation Code, the Securities Regulation Code, and the Financial Products and Services Consumer Protection Act, among others.
In December, the commission en banc denied the appeal filed by New Seataoo Corp. and Seataoo Information Technology OPC against the revocation order for lack of merit.
大象传媒 sought comment from Seataoo via e-mail but has yet to receive a response as of the deadline. 鈥 Revin Mikhael D. Ochave
