SEC orders Infinity8 to halt operations

MANILA, Philippines — The Securities and Exchange Commission (SEC) has flagged another entity for soliciting investments from the public without the necessary permits.In a Jan. 16 order, the SEC en banc directed Infinity8Networks Digital Services OPC to immediately cease and desist from further engaging in the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.

The SEC also prohibited Infinity8Networks from transacting any business involving funds in its depository banks and from touching assets related to its investors.

It issued the order after its Enforcement and Investor Protection Department (EIPD) found Infinity8Networks actively offering and selling unregistered securities in the form of investment contracts to the public.

According to EIPD’s investigation, Infinity8Networks offered investment plans ranging from P500 to P5 million for a guaranteed return of 30 percent in five days. The company also promised investors an additional income of five percent for their referrals.

This scheme, the SEC said, involved the sale of securities in the form of investment contracts. An investor makes an investment with the expectation of making profits.

The Securities Regulation Code (SRC) prohibits the sale or distribution of securities in the Philippines without a registration statement duly filed with and approved by the SEC.

Infinity8Networks Digital Services OPC is registered as one person corporation but is not allowed to sell, offer or deal in securities.

The SEC also said that Inifnity8Networks’ act of selling and offering securities without the requisite registration statement “constitutes fraud which should be promptly restrained for the protection of the investing public.”

Against this backdrop, the SEC warned the public against investing in Infinity8Networks as early as Nov. 13, 2023 through an advisory.

The EIPD then ordered Inifnity8Networks to pay a fine of P1 million and later on, an order of revocation was issued.