THE Securities and Exchange Commission (SEC) has permanently barred the Humanitarian and Spiritual Mission Apostolates of Davao and Asia Inc., Hasmadai Foundation Inc. and Humanitarian Institute of Technology Corp. (Hasmadai Group) from the unauthorized solicitation of investments from the public.
A cease-and-desist order (CDO) issued last May was made permanent by the regulator in a Dec. 3 resolution.
The commission en banc denied the group’s motion to lift the CDO, which was issued after Hasmadai was found soliciting investments through several branches in the Caraga region without the necessary SEC license.
The group was said to be soliciting donations ranging from P5,000 to P20,000, with a guarantee of a monthly “missionary allowance” equivalent to 27 percent to 34 percent of their donations.
The SEC said the group promised donors of P5,000 a return of P8,100 in just six months, while donors of P20,000 would get P41,000.
“The use of the term ‘donation’ by Hasmadai does not operate to negate the fact that the unauthorized scheme which it is carrying out consists of selling/offering securities in the form of [an] investment contract,” the SEC said.
It noted that Section 8 of the Securities Regulation Code provides that securities cannot be sold or offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the corporate regulator.
In its motion, the Hasmadai Group argued that as donations, the amounts it was receiving could not be considered as securities.
The commission en banc dismissed this, saying the promise of returns had led to the so-called donations.
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