Home Top News SEC cancels Koen Solutions’ company registration 

SEC cancels Koen Solutions’ company registration 

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THE Securities and Exchange Commission (SEC) has revoked the incorporation certificate of Koen Solutions OPC for violating Section 44 of the Revised Corporation Code of the Philippines (RCC).

Section 44 of the RCC on the ultra vires acts of corporations states that a corporation cannot exercise corporate powers other than what was conferred in its articles of incorporation.

In an issuance on Monday, the regulator said the primary purpose of Koen Solutions was to engage in the business of information technology products and services.

Its articles of incorporation stated that the corporation could not solicit investments and could not issue investment contracts.

According to the SEC, its Enforcement and Investor Protection Department (EIPD) found that Koen Solutions had been offering marketing schemes.

Investors were given three marketing options — by being an agent, by referring other investors for a fee, and by investing through the Koen application.

As an agent, the investor will have to recruit 30 members and have them sign up for an agency contract. Referral fees or commissions for every referral were said to bring as high as a 12% daily income.

Meanwhile, the income from investments through the company’s application will depend on the investor’s choice of a robot. The investments are said to have a daily income of 2.5% to 3% and a monthly income of 75% to 90%.

On Sept. 9, the SEC issued an advisory against Koen wherein it advised the public not to invest in the company. But the regulator later said that it was still receiving e-mails from the public that the company continued to solicit investments.

A show-cause order was then issued against the company and its president, Rafael Albin Nepomuceno Khoe, on Oct. 10. In response to the order, Koen Solutions denied the solicitation reports and sent a compliance motion to EIPD on Oct. 20 seeking to lift the SEC advisory.

In its investigation, EIPD was able to gather evidence that proved the company’s engagement in offering and selling securities to the public without the required registration approved by the SEC.

CEASE-AND-DESIST ORDER ON SILVERLIONSeparately, the SEC issued a cease-and-desist order on Nov. 26 against Zamboanga-based Silverlion Livestock Trading Corp. for soliciting investments without a license.

According to the order, Silverlion has been offering securities to the public for as low as P5,000 to P100,000 with a promise of 2.3% daily earnings.

It has also been offering a special promo wherein investors may receive a Ford Raptor or any car of their choice once they lock in a P400,000 investment in 60 days.

According to the SEC, the scheme used by Silverlion pools resources from new investors to pay guaranteed returns to its existing investors.

The regulator described the scheme as a form of selling securities that require prior registration with and approval by the SEC.

The order also prohibits the company and its representatives from transacting any business that involves funds. It also directs them to cease their internet presence. — Justine Irish D. Tabile

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