MANILA, Philippines - Two foreigners were arrested at a Pasig City hotel Wednesday when they were caught in the act of offering securities to potential investors without the proper permits, officials said yesterday.
National Bureau of Investigation (NBI) officer-in-charge Nonnatus Caesar Rojas identified the suspects as American Garwood Weatherhead, head of sales of Seandar Europe Inc. and Seandar Hong Kong; and his associate, Czech Tomas Pokorny.
According to NBI anti-fraud division chief Cesar Bacani, they received a request last May 21 from the Securities and Exchange Commission seeking assistance for a joint entrapment operation. The SEC received a tip that Seandar Europe and Hong Kong, through Weatherhead, were planning to hold a presentation on their high-yield principal guaranteed commodities fund at a Pasig hotel on May 23.
The SEC certified that Seandar Europe and Hong Kong are not registered issuers of securities and are not licensed to act as broker, dealer, investment house, investment company adviser, or mutual fund distributor in the Philippines. Weatherhead is not licensed to engage in the buying and selling of securities in the Philippines as a broker, dealer or salesman, according to the SEC.
Some of the NBI agents and SEC operatives posed as potential clients and attended the presentation, wherein Weatherhead and Pokorny were caught in the act of offering securities in the form of an investment contract to the public.
The two men were brought to the Department of Justice’s task force on securities fraud for inquest, the NBI said.