MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the corporate registration of another company involved in illegal investment scheme.
The SEC said it has canceled the corporate registration of Suhail Medical Center Inc. for the unauthorized solicitation of investments from the public.
The company, headed by Jesser Cordova, has been publicly offering and selling securities without the necessary secondary license, according to the SEC.
In doing so, the SEC said Suhail Medical Center committed an ultra vires act under Section 44 of Republic Act 11232 or the Revised Corporation Code of the Philippines.
“The company’s activities also constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree 902-A,” it said.
The public has been warned against investing in Suhail Medical Center as early as November last year through an SEC advisory.
According to the SEC, Suhail Medical Center has been soliciting investments from the public worth P1.06 million for the co-ownership seat to its supposed hospital in Calamba, Laguna.
Investors also have the option to purchase half a seat worth P550,000.
The commission said the company promised investors returns in the form of quarterly revenues based on the hospital’s performance, free laboratories and check-ups for the co-owners and their next of kin, as well as lifetime income.
Suhail Medical Center’s scheme involved securities, particularly an investment contract, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, the SEC added.
As a form of security, investment contracts must be registered with the SEC before they can be sold or offered within the Philippines.
“Records of the commission show that Suhail Medical Center is not authorized to solicit investments from the public as it has not secured the prior registration and/or license for such activities,” the SEC said.
The SEC Enforcement and Investor Protection Department likewise found that Suhail Medical Center’s promised profits and returns would be derived from the investments of new member-investors, not its actual operations.
“Necessarily, this scheme is unsustainable as it must rely on a continuous inflow of new investors in order to make pay-outs to earlier investors, all the more made glaring considering that it has no actual operations yet to speak of,” the SEC said.
Certification from the Health Facilities and Services Regulatory Bureau of the Department of Health were also secured by the SEC stating that there was no license issued to a certain Suhail Medical Center located in Calamba, Laguna, nor was there an application for such health facility.