SEC cautions Cebu and Bohol residents vs investment scams

CEBU, Philippines — The Securities and Exchange Commission (SEC-Cebu) has warned residents of Cebu and Bohol against continuous proliferation of scams following the filing of a criminal complaint against New Seataoo Corporation and Seataoo Information Technology, OPC (Seataoo OPC), along with their officers, for allegedly soliciting investments from the public without the required license.

SEC Cebu Director Atty. Sheara Lupango-Tamayo specifically called consumers to be careful in engaging good-to-true investment schemes like what Seataoo Group has been offering.

“The SEC continues to remind the public to exercise caution when considering investment opportunities and to verify the legitimacy of any entity offering financial products,” said Tamayo.

In a complaint submitted to the Department of Justice (DOJ) on January 16, the SEC charged New Seataoo, Seataoo OPC, and their key personnel with multiple violations, including Section 8.1 of the Securities Regulation Code (SRC), provisions of the Cybercrime Prevention Act of 2012, and the Financial Products and Services Consumer Protection Act (FCPA).

Among those implicated in the complaint are Anna Rose Jangao Tero, Jonathan Tuazon Garcia, Danny Tuazon Sudaria, Lew Yean Yee, Seow Kai Sheng, Dylan Lim, and Jayson Corono Clidoro, the single stockholder of Seataoo OPC.

The SEC’s investigation revealed that the Seataoo Group was offering unregistered investment contracts under the guise of a dropshipping e-commerce platform.

Investors were enticed to deposit money to become online sellers, with the promise of profits ranging from 7 percent to 12 percent of their investment.

The scheme also included an affiliate program, where investors could earn a 3 percent commission for referring others.

Complaints were filed with the SEC after individuals claimed they were lured into investing amounts between ?20,000 to ?2.3 million, based on advertisements found on social media platforms like Facebook and YouTube.

According to the SEC, the structure of Seataoo’s scheme confirms that the deposited funds were investments rather than simple transactional payments. Investors demanded not just a return of their deposits but also the promised profits, reinforcing the illegal sale of securities without SEC approval.

The SEC emphasized that under Philippine law, selling or offering securities to the public requires proper registration and a permit from the Commission. The Cybercrime Prevention Act further increases the penalty for offenses committed through digital platforms.

In June 2024, the SEC revoked the corporate registrations of New Seataoo Corporation and Seataoo OPC due to multiple violations, including the Revised Corporation Code of the Philippines and the Securities Regulation Code.

A subsequent appeal filed by the Seataoo Group to challenge the revocation was denied by the SEC En Banc in a decision dated December 26, 2024, for lack of merit.