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SEC bans firm from soliciting investments

THE Securities and Exchange Commission (SEC) has barred Chiyuto Creative Wealth Documentation Facilitation Services from soliciting investments from the public through a double-your-money roulette game.

In an order issued on February 1, the Commission directed Chiyuto, which registered as a sole proprietorship and later on as a one-person corporation (OPC), to cease and desist, under pain of contempt, from selling and/or offering securities in the form of investment contracts until it has filed and secured the necessary license.

The SEC further enjoined Chiyuto and Creative Wealth OPC from transacting business involving funds in its depository banks and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets for the benefit of affected investors.

The order covers Chiyuto’s owner, principal, proprietor and sole stockholder-director-president Patrocenio C. Chiyuto, Jr., nominee Judy B. Pajarillo and alternate nominee Felomina L. Andrada.

The order also extends to other officers, representatives, salesmen, solicitors, agents, uplines, enablers and influencers, including Maricris Can Chiyuto, Maria Christina Chiyuto Canobida, Naneth Barruela, Aureliza Apa-Ap, Capiz Buy and Sell Anything, Kiaka Avel Cho, and Santiago City Online Market

The SEC issued the order after finding that Chiyuto has offered investments to the public with promised returns of 100% in one day, 30 days or 45 days, depending on the outcome of the roulette, without securing a secondary license

Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

The Commission warned the public against investing in Chiyuto and other entities engaged in unauthorized investment-taking activities as early as August 18, 2020 through an advisory, as well as through an investor alert posted on its official Facebook page on October 23, 2020.