The Securities and Exchange Commission (SEC) issued cease and desist orders against digital lending platform Peso Flow and investment scheme Stryder Resources for operating without required licenses and misleading the public.
The separate regulatory orders direct both entities to immediately halt their operations, take down their digital platforms and stop soliciting funds from borrowers and investors. The commission also ordered an asset freeze on Stryder Resources to preserve funds for affected investors.
Peso Flow
In an order dated Oct. 30, the SEC Financing and Lending Companies Department directed Peso Flow and its operators to stop all lending activities. The commission found that Peso Flow operated without a certificate of authority and falsely claimed affiliation with Sofi Financing Inc., a registered financing company. (Read More: SEC Investment Watchlist Philippines: Advisories, Cease-and-Desist Orders, and Flagged Schemes)
Sofi Financing, which operates the official lending platform Finbro.ph, filed a formal complaint denying any connection to Peso Flow. The SEC ordered Peso Flow to remove its website and social media accounts, stating that regulatory authority is personal to the conferred entity and cannot be simulated or manufactured through misrepresentation.
Stryder Resources
A separate order issued Nov. 11 by the Enforcement and Investor Protection Department targeted Stryder Resources and Chairman John Hubert S. Maravilla Jr. The SEC found the company actively solicited investments on Facebook without a secondary license to offer securities, violating the Securities Regulation Code and the Financial Products and Services Consumer Protection Act.
Stryder Resources operated an e-commerce scheme promising guaranteed high yields. The company offered multiple tiers, including a seed program requiring a ₱500 initial deposit for a ₱600 return in five days, and an accelerate program promising an 80% return on a ₱5,000 deposit in 24 days. The scheme also included a 10% direct referral bonus and a 1% indirect downline bonus.
While registered as a One Person Corporation, Stryder Resources holds no license to sell securities. The SEC prohibited the company, its officers and its promoters from transferring or disposing of any assets or bank deposits to prevent grave damage to the investing public. (Read More: SEC Investment Watchlist Philippines: Advisories, Cease-and-Desist Orders, and Flagged Schemes)
This article is published on BitPinas: SEC Orders Peso Flow, Stryder Resources to Halt Unlicensed Lending and Investment Operations
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