July 7, 2013
7:24 pm [ Manilatimes.net ]
by MADELAINE
B. MIRAFLOR
The
Securities and Exchange Commission (SEC) has filed a cease and desist order
against Philippine Landgroup Inc. (PLGI), a real-estate company victimizing
citizens with its “owning your own hotel room scam.”
In an order,
SEC said that its enforcement and prosecution department (EPD) found out
through a series of investigation that PLGI is offering unregistered security
investments to the public through one of its real-estate projects, the
Grandview Tower Condotel located in Angeles City.
PLGI is
allegedly encouraging investors to buy and purchase their own hotel room in
Grandview Tower and will then be asked to pay P50,000 for the initial paperwork
and reservation fee.
By purchasing
a unit, the buyer will then be required to enter into a management agreement
with Grandview Property Management Inc., wherein the unit bought is pooled
together with the units purchased by other buyers and operated as hotel
enterprise.
The EPD of
the commission further uncovered the fact that the price list of units being
sold by PLGI and the announcements regarding the Grand Tower Hotel Vacation
Club are being posted in social networking site Facebook.
According to
the SEC, the overall investment scheme which is being aggressively offered and
sold by PLGI has the elements of an investment contract, a form of security
which must be registered with the commission before it is sold to the public.
The acts of
PLGI in “soliciting sales undoubtedly fall under the definition of public
offering,” SEC specified. However, the company failed to “secure the
registration of subject of securities with the commission.”
“PLGI and its
salesmen must also secure a secondary license to act as broker-dealer or
salesmen or associate persons thereof in securities, but they have not complied
with the mandatory requirement. Thus, it is necessary that a cease and desist
order be issued to enjoin the company from further offering and selling
securities to the public,” the SEC cited in its ruling.
“Otherwise,
allowing PLGI to continue its business operations will operate as a fraud on
investors or is otherwise likely to cause grave or irreparable injury or
prejudice to the investing public,” it added.
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