THE Securities and Exchange Commission (SEC) said on Monday it had filed charges against 67 foreigners for falsifying documents such as bank certificates that they presented as proof of paid-in capital.
Charged were officials connected with lending firms: 7 Lions Lending Management Corp., Amsuda Lending Corp., Bhati and Jogi and Swali Lending and Trading Corp., Dr. Verma Lending Corp., Maan and Baker Landing Inc., Manak Pur Lohara Lending Corp., Paramjit Harvinder Gold Lending Inc.,Purewal and Rashpal Lending Inc., Divya and Kavita Lending Corp., Satguru Lending Corp., Sartaj Lending Inc., All In 7000 Lending and Trading Corp., Balak1008 Lending and Trading Inc., Star 77777 Lending and Trading Inc., Chardikla 786 Lending and Trading Inc., Naurasidhu55 Lending and Trading Corp., Phil 86 Gurunanak Lending and Trading Corp., and X-Ceee86 Lending and Trading Inc.
In a statement, the SEC said its enforcement and investor protection department found a “disturbing” number of applications for company registration with bank certificates bearing the stationery of a bank branch but signed by a bank representative of another branch, and other application documents with the same entries or business plans and the same corrections. The documents appear to have been prepared or filed by only one person.
“Also, applicants whose principal office addresses were outside Metro Manila submitted bank certificates of one and the same bank and branch located in Pasay City, Metro Manila,” the SEC said.
SEC Commissioner Emilio Aquino said the commission later found out that the certificates were fake.
“Representatives from the subject bank, in a letter to the SEC, categorically denied having issued the submitted bank certificates. It verified that the account numbers indicated in the bank deposit certificates were not issued by the subject bank since they use a different bank code,” the commission said.
The SEC’s enforcement department filed before the Office of the City Prosecutor of Pasay a criminal action for falsification of public and commercial documents under Article 172 of the Revised Penal Code and violation of Section 12 (3) (a) of the Lending Company Regulation Act or Republic Act (RA) 9474 against the directors, officers, and stockholders of the applicants.
“We will prosecute those submitting fake bank certificates. The SEC shall be the complainant. For sure the SEC was indeed misled by the bank certificates as proof of paid-in capital,” Aquino said.
The SEC said it would also revoke the certificates of incorporation or primary registration of companies found to have submitted fake documents. The firms face a perpetual ban from establishing a lending company.
“We also plan to blacklist all company service providers/facilitators who had a hand in submitting these spurious documents,” he added.
Under Section 12 of RA 9474, violators maybe also be imposed a fine ranging from P10,000 to P50,000 or imprisonment of not less than six months but not more than 10 years, or both, at the discretion of the court.