SEC issues Cease and Desist Order against Fortune Wave

​The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Fortune Wave Solution Hub OPC, Fortune Wave Trading, Fortune Wave Trading PH, and certain individuals for the unauthorized solicitation of investments from the public.

In an order dated July 3, the SEC Commission En Banc directed the Fortune Wave group to immediately cease and desist from offering or selling unregistered securities in the form of investment contracts without the necessary license from the Commission.

The order also covers individuals named Guiller King Ortile, Jasmine Nicole Bautista, and Rafaella Marie Castillo, and the Fortune Wave group’s owners, agents, representatives, salesmen, uplines, promoters, influencers, enablers, conduit entities, subsidiaries, as well as all persons claiming and acting for and on their behalf.

The issuance of the CDO comes after the SEC Enforcement and Investor Protection Department found the group to be offering and selling investment contracts on Facebook through various daily plans ranging from P1,000 to P500,000.

Under the scheme, the investor is promised yields ranging from 3 percent to 330 percent, with promises of a 100 percent money-back guarantee.

However, records with the SEC show that the Fortune Wave group has no secondary license to operate as a broker/dealer of securities. Likewise, it is not a registered issuer of any securities or mutual funds, including exchange traded funds, proprietary/non-proprietary shares, or membership certificates and timeshares.

Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.

Meanwhile, Section 28 of the SRC provides that no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the Commission.

“Considering that Fortune Wave and its agents have no license to offer or sell securities, and have not secured the registration of these securities with the Commission…they are therefore in clear violation of Sections 8 and 28 of the SRC,” the order read. 

“On account thereof, this Commission finds that the issuance of the CDO against Fortune Wave and its agents is warranted to protect the investing public from investing in unregistered securities which have not complied with the minimum regulatory requirements prescribed by law, rules and regulations,” it added.