THE Securities and Exchange Commission (SEC) has revoked the corporate registration of Ecomamoni Environmental Recyclable Materials Manufacturing, Inc. for allegedly soliciting investments without the proper license.
The SEC-Enforcement and Investor Protection Department canceled the entity’s certificate of incorporation in an order dated Feb. 25, the commission said in an e-mail statement over the weekend.
According to the corporate regulator, Ecomamoni violated Section 44 of Republic Act (RA) No. 11232, or the Revised Corporation Code (RCC); Sections 8.1, 26.1, and 28.1 of RA No. 8799, or the Securities Regulation Code (SRC); and Section 11 of RA No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).
The SEC also ordered Ecomamoni to pay a P1-million fine for offering securities to the public without the required license and registration. The entity and its incorporators were also directed to pay the same amount as administrative sanctions under the SRC.
Under the RCC, corporations are prohibited from possessing or exercising corporate powers beyond those granted by law or their articles of incorporation.
Meanwhile, the SRC prohibits selling or offering securities without a registration statement approved by the SEC.
Ecomamoni’s solicitation of investments from the public without securing the necessary license constitutes fraud, which is prohibited under the FCPA.
The SEC said Ecomamoni urged the public to invest by purchasing its recycling plans, where investors were instructed to press the start button of their chosen plan daily to receive the promised profit.
The commission issued an investor advisory against Ecomamoni in November last year, stating that the entity was an unregistered corporation.
Ecomamoni subsequently registered as a corporation in December last year, with its primary purpose listed as manufacturing recyclable materials and converting waste to energy for related works and activities.
However, the SEC said corporate registration does not grant the authority to solicit investments.
“Despite this, the SEC received reports that Ecomamoni presented its certificate of registration with the SEC to convince the public of the legitimacy of its operations. It continuously introduced a new scheme with higher participation fees ranging from P600 to P165,000, with the highest daily earning of P7,000,” the commission said.
BusinessWorld e-mailed Ecomamoni for comment but has not received a response before the deadline. — Revin Mikhael D. Ochave