THE Securities and Exchange Commission (SEC) said the Department of Justice (DoJ) has really helpful the filing of criminal charges against Opsytech Corp. and its agents for allegedly soliciting investments from the general public without proper authorization.
In a press release on Thursday, the SEC said state prosecutors found sufficient evidence with reasonable certainty of conviction to charge Opsytech and its president for violations of the Securities Regulation Code (SRC) and the Cybercrime Prevention Act.
Two Opsytech agents were also implicated for allegedly violating Sections 26.3 and 28 of the SRC, in relation to Section 6 of the Cybercrime Prevention Act.
Under Sections 8 and 28 of the SRC, entities offering securities to the general public must first secure registration and a secondary license from the SEC. Section 26.3 prohibits any person from directly or not directly engaging in fraudulent acts, transactions, practices, or business courses related to securities that deceive others.
The case stems from complaints received by the Commission regarding Opsytech offering a business loan scheme to boost funds for capital expenditures.
Based on the SEC, Opsytech promoted returns of two% to 9% per 30 days on a minimum P100,000 investment, locked in for one 12 months and backed by postdated checks.
A complete of 16 complainants reportedly invested around P14.95 million, initially receiving payouts for a couple of months. The checks later bounced as a consequence of insufficient funds or closed accounts, prompting the investigation.
“Indeed, [the] respondents falsely represented that Opsytech has legitimate projects and business dealings. Unbeknownst to the investors, these were mere a part of an elaborate show on the a part of the respondents… so as to persuade them to part with their money,” the resolution read.
“The concerted actions amongst respondents to deceive the general public supports the existence of conspiracy within the commission of this violation,” it added.
The SEC said the DoJ determined that Opsytech’s business loan agreements qualify as investment contracts, as they involved the usage of private investors’ funds for capital expenditures in return for fixed profits.
The finding also noted that Opsytech lacked the required registration or authority to sell, offer, or distribute securities under the SRC.
BusinessWorld tried to achieve Opsytech for comment, but no working contact information was available. — Alexandria Grace C. Magno