MANILA, Philippines - The Securities and Exchange Commission (SEC) has revoked the operating license of First Asia Client Depository Services Inc. (FACDS) for fraud committed in the procurement of its registration certificate.
An investigation conducted by the SEC showed that FACDS used fictitious addresses for its incorporators.
According to the SEC, FACDS used a fictitious address in its articles of incorporation to make it appear legitimate in order to deceive the commission into approving the same.
The probe was in response to a complaint filed by a certain Ray McElhinney requesting an investigation into the alleged boiler room activities of Goodwin Capital Management Corp., which used FACDS’s mailing address.
McElhinney, a resident of Dubai, United Arab Emirates, claimed he was hard sold to buy into two US companies, namely Global Media Productions and Saviour Energy Corp. for a total of $82,900 by a certain George Spencer of Goodwin.
Initially, McElhinney did not have any problems with his investments since the value of the stocks at the time was increasing.
He started to be suspicious when he was asked to deposit $40,000 in a trust security by way of security because Goodwin had not yet transferred the stock certificates in his name.