SEC Stops Bravo Zulo Romeo Lending

​The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Bravo Zulo Romeo Lending Corporation (BZR Lending) for operating an unauthorized lending business.

In an order promulgated June 24, the SEC Financing and Lending Companies Department (FinLend) directed BZR Lending, including its owners, operators, promoters, representatives, agents, and all persons claiming and acting for and, on their behalf, to immediately cease and desist from facilitating any lending activity or transaction.

This follows complaints filed by borrowers who reported abusive collection practices from the online lending platform (OLP) Magic Peso.

Investigations conducted by the FinLend showed that Magic Peso is owned and operated by BZR Lending. While BZR Lending is registered with the SEC as a lending company, it failed to file a disclosure pertaining to any OLP.

This constitutes a violation of SEC Memorandum Circular No. 19, Series of 2019, which requires full disclosure and reporting requirements for financing and lending companies using OLPs, according to the order.

“On account of [BZR Lending]’s continuing operation of Magic Peso, the Commission holds that the issuance of a CDO is warranted…not only to penalize the [company], but also to prevent fraud, injury, or harm to the public and financial consumers who are at the [company’s] mercy,” the order read.