The Department of Justice has indicted New Seataoo Corp. and Seataoo Information Technology OPC, along with their officers and directors, for allegedly engaging in illegal investment schemes, according to the Securities and Exchange Commission (SEC).
In a statement on Friday, the corporate watchdog said state prosecutors found prima facie evidence to charge these entities for violating Sections 8 and 28 of the Securities Regulation Code (SRC). This is in relation to the Cybercrime Prevention Act.
They likewise recommended filing 54 counts of violating Section 26 of the SRC. Each count represents the complaints that investors filed.
‘Respondents misrepresented their companies as a legitimate e-commerce platform when, in truth, there was no inventory, no supplier arrangements and no real product movement. The sellers could not operate their own independent online shops,’ the DOJ resolution dated Oct. 22 states.
‘Their failure to register these securities with the SEC deprived the investing public of the safeguards and disclosures required by law, thereby constituting a clear and deliberate infraction of the said provision,’ it said.
Aside from the two companies, executives indicted are New Seataoo CEO Widiana Chen and project manager Dylan Lim. Also indicted were directors Anna Rose Jangao Tero, Jonathan Tuazon Garcia, Danny Tuazon Sudaria, Lew Yean Yee and Seow Kai Sheng.
Also included are Seataoo OPC’s single stockholder, Jayson Corono Clidoro.