Bogus ‘Ayala’ firms slapped with cease and desist order

The Securities and Exchange Commission (SEC) on Wednesday said it issued cease and desist orders against several entities using the name of Philippines’ oldest conglomerate, Ayala Corporation, to solicit investments from the public.

Citing an order dated February 22, the SEC said it ordered “bogus” Ayala Corporation Group Inc., Ayala Corporation Budgetarian Online Shop, Global Online Ayala Corporation, Bellavita Ayala Corporation, and Ayala Corporation E Commerce to “immediately cease and desist from further engaging in the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.”

The corporate regulator’s directive covers officers, operators, promoters, representatives, salesmen, agents, uplines, enablers, influencers, and any and all persons, conduit entities, subsidiaries and affiliates “claiming and acting for and on behalf of the bogus Ayala group.”

The SEC said its Enforcement and Investor Protection Department (EIPD) found that the bogus Ayala entities have been conducting an unregistered investment scheme called “Tasking and Recharging” —which involves the offering of online jobs to prospective investors who are then tasked to perform certain tasks in exchange for commissions.

Prospective investors are also encouraged to buy consumer products from partner-sellers or merchants to improve store rankings to receive commissions.

“The bogus Ayala group’s scheme involved the sale and/or offer of securities in the form of investment contracts, whereby a person makes an investment of money, in a common enterprise, with the expectation of profits, to be derived solely from the efforts of others,” the SEC said.

The corporate regulator said that the Securities Regulation Code (SRC) provided that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

The SEC, moreover, said the bogus Ayala entities are showing copies of fake incorporation documents with the SEC and registration papers with the Department of Trade and Industry (DTI) to establish legitimacy.

“[The bogus Ayala group] willfully employed fraud by making it appear to the public that they are legitimate corporations authorized to sell, offer, and deal with securities,” the order read.

The SEC said applicants for company registration must use a name that is distinguishable from other corporate or partnership names registered with the agency.—RF, GMA Integrated News