DAVAO CITY — The Securities and Exchange Commission (SEC) has revoked the corporate registration of Wellcons Unlimited Systems, Inc. for employing a “double-your-money” scheme to illegally solicit investments from the public.
In an order dated July 5, the SEC Enforcement and Investor Protection Department (EIPD) found that Wellcons has been publicly offering and selling securities without the necessary secondary license from the Commission.
In doing so, Wellcons committed an ultra vires act under Section 44 of Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines.
The company’s activities also constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree No. 902-A, according to the order.
Just before the order was issued, the Davao City Anti-Scam Unit (ASU) padlocked the office of the company in Matina Crossing, McArthur Highway after the SEC ordered that its operations be stopped.
Accompanied by personnel of the city’s Business Bureau, the ASU closed down the office of Wellcons after the city government received a copy of the cease and desist order from the SEC-Davao Extension Office (SEC-DEO).
The SEC-DEO earlier verified that the company was also operating in the city as well in other areas within its jurisdiction.
Wellcons’ investment scheme involves…
