SEC stops illegal investment scheme of PU Prime

​The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Pacific Union LLC, PU Prime Philippines, and/or PU Prime Support PH for soliciting investments from the public without the necessary approvals from the Commission.

In an order dated June 19, the SEC Commission En Banc directed PU Prime to immediately stop from offering or selling unregistered securities in the form of shares, bonds, and other debt securities, options and warrants, stocks, futures, and contracts for difference (CFD) to the public.

The CDO also covers individuals named Martin David Adorable, Jerico Matela, Janelle Crystal Gayle M. Alipio, Janna Deloeste, Tiffany Deloeste, and April Anne Castillo a.k.a. April Castillo, and PU Prime’s representatives, salesmen, solicitors, agents, uplines, enablers, influencers, and any and all persons claiming and acting for and in its behalf.

In addition, they were prohibited from transacting any business involving the funds in its depository banks and from transferring, disposing, or conveying any assets to preserve the assets of the investors.

The Commission issued the order after the SEC Enforcement and Investor Protection Department (EIPD) found PU Prime to be engaged in offering and selling of unregistered and leveraged trading services without registration as a corporation or as a partnership with the Commission, as well as the secondary license to act as broker and/or dealer of securities. 

These trading services are securities in the form of futures, CFDs on commodities, shares, bonds and other debt securities, options and warrants, foreign exchange, and margin contracts. 

Under its scheme, PU Prime requires prospective investors to make investments ranging from $50 to $10,000. The amount is placed in a bank specified by the company and will be used in trading foreign currency, and/or investing in CFD.  

It promises guaranteed monthly returns of 10 percent of the invested amount and a 100 percent deposit bonus on first deposits, a strategy commonly used to attract investors in high-risk trading schemes.

Similarly, PU Prime agents also have no licenses to act as associated persons, salesman and/or certified investment solicitor of a broker-dealer in securities investment, investment house, underwriter of securities, investment company adviser and/or mutual fund distributor.

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 states 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.

“(T)his Commission finds that the issuance of the CDO against PU Prime 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,” the order read.  

“This, to our mind, exposes the investing public to the risk of sustaining loss, damage, irreparable injury or prejudice, which this Commission is mandated to prevent at the onset,” it added.