DOJ indicts Align Assets for unauthorized solicitation of investments

The Department of Justice (DOJ) will file criminal charges against Align Assets and its officers for soliciting investments from the public without the required licenses, following a complaint filed by the Securities and Exchange Commission (SEC).

In a resolution promulgated on November 27, state prosecutors said they have found prima facie evidence with reasonable certainty of conviction to indict Align Assets for violations of Sections 8, 26.2 and 28 of Republic Act No. 8799, or the Securities Regulation Code, in relation to Section 6 of RA No. 10175, or the Cybercrime Prevention Act of 2012.

The state prosecutors also recommended the filing of charges against the company’s head of operations in the Philippines, Rex Tamaray Mayam, as well as Kristina Mabborang Famisan, Gerald Villamin Gallardo, Kenneth Eusebio, Girlie Claveria Lacarte, Jocelyn Lintag Juco, Ann Janen Toyhacao Hinacay, Alma Estropegan Briz, Kyla Napolis Bornilla, Jayson Calubaquib Dela Cruz, Roberto Mayam Alcanzaren, and Ariel Tamaray Mayam.

Section 8 of the SRC prohibits individuals from selling securities without a registration statement duly filed with and approved by the SEC, while Section 28 mandates that all persons engaged in the business of buying or selling securities to be registered with the Commission.

Meanwhile, Section 26.2 of the same law makes it unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities, to obtain money or property by means of untrue statements of a material fact, or the omission of a material fact to make the statements, in the light of the circumstances under which they were made, not misleading.

Section 6 of the Cybercrime Prevention Act raises by one degree the penalty imposed against crimes committed through the use of information and communications technologies.

Align Assets presented itself to the public as a United Kingdom-based decentralized trading platform that supposedly had no identity, individual or group handling it, with a “bot” performing its cryptocurrency trading instead.

Following inquiries on the legitimacy of Align Assets’ investment solicitation activities, the SEC Enforcement and Investor Protection Department (EIPD) conducted an investigation on the company’s operations, where it found that most of the traffic is coming from the Philippines.

Under its scheme, Align Assets entices the public to invest by promising a huge return of three percent on their investment every working day, or equivalent to 150 percent in 50 working days. The public may also earn additional five percent for direct referrals and 0.05 percent for indirect referrals.

“Based on the evidence presented by the complainant, the securities offered by the respondents are unregistered and unauthorized both in the Philippines and in their purported base, the United Kingdom,” the DOJ resolution read. “Respondents have presented no evidence as to the legitimate existence of Align Assets and only presented bare denials on charges against them.”

“Records show that they enticed the public to invest money using social media posts on Facebook through false pretenses and misrepresentations on a supposed lucrative investment opportunity,” it added.
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As early as March 2021, the SEC EIPD has issued an advisory to warn the public against investing in any scheme offered by Align Assets as it is not registered as a corporation or a partnership with the SEC, and therefore, unauthorized to solicit investments from the public.