DOJ Charges ‘Modesto Cardano’ Trading Firm for Unlawful Investment Solicitation
The Department of Justice (DOJ) has filed criminal charges against Modesto Cardano Market Cap Tr3ding Services OPC and its key officials for engaging in illegal investment solicitation, as reported by the Securities and Exchange Commission (SEC).
The DOJ’s decision is based on a complaint by the SEC, citing the company for offering unregistered securities, which is a violation of Republic Act (RA) No. 8799 (the Securities Regulation Code) and RA No. 10175 (the Cybercrime Prevention Act of 2012).
The company’s sole stockholder, director, and president, Modesto Clidoro Miravalles, along with nominees Tonio Miravalles and Karissa Alviar, are also implicated in the charges for violating the aforementioned laws.
These violations stem from the company’s failure to register securities with the SEC and the improper conduct of business involving the buying and selling of securities without proper registration, as required by the law.
The indictment pointed out that the company failed to submit essential documentation to the SEC, leading to suspicions of fraudulent investment activities. Upon further investigation, it was discovered that Modesto OPC was soliciting investments from the public through social media, promising lucrative monthly returns.
The SEC’s Enforcement and Investor Protection Department (EIPD) closely monitored Modesto OPC’s actions, revealing that the company’s investment plans included enticing schemes offering guaranteed returns. However, it was found that Modesto OPC lacked any registration, license, or authorization to offer or sell securities to the public.
The DOJ highlighted that the company’s actions constituted an issuance of investment contracts that necessitated prior registration with the SEC. Failure to comply with these regulations placed investors at risk and violated the basic requirements of the law.
The legal actions taken against Modesto OPC are part of a broader crackdown on unauthorized investment entities across the Philippines by regulatory bodies like the SEC. Several warnings have been issued against similar schemes soliciting funds without the necessary licenses or approvals.
Entities such as LS KBS and Valtoro have also been flagged for engaging in unauthorized investment activities, similar to Modesto OPC, highlighting the prevalence of such illegal practices in the country. These entities were found to lack the essential licenses required to offer securities legally to the public.
The ongoing efforts to combat illegal investment solicitation demonstrate the commitment of regulatory authorities to protect investors and uphold the integrity of the financial market. By holding accountable those engaged in illicit activities, the government aims to safeguard the interests of the public and ensure compliance with relevant laws and regulations.
