Silverlion loses registration due to Ponzi scheme

The Securities and Exchange Commission (SEC) has revoked the company’s registration of Silverlion Livestock Trading Corp. To obtain investments from the public without the required license from the agency.

In an order dated January 5, the Securities and Exchange Commission’s Enforcement and Investor Protection Department (EIPD) revoked Silverlion’s certificate of incorporation for violating the Philippines’ revised corporate law.

The SEC said Silverlion’s activities constitute a serious misrepresentation of what it could do, to great harm or harm to the general public, cause to revoke the company’s certificate of registration pursuant to Presidential Order 902-A.

The SEC said Silverlion also does not have the secondary license required by the SEC to offer or sell securities to the public.

Investigations by the EIPD Expansion Bureau and SEC Zamboanga revealed that Silverlion was offering and selling investment packages to the public with guaranteed returns of 35 percent within just 15 days. With this, investments ranging from P1,000 to P100,000 can generate returns of P1,300 to P130,000 respectively.

The Silverlion scheme involves securities, particularly an investment contract, in which a person invests their money in a joint venture and leads to an expectation of profits primarily from the efforts of others, according to the EIPD.

As a form of security, investment contracts must be registered with the Securities and Exchange Commission before they can be sold or offered within the Philippines.

“The scheme offered by Silverlion Livestock Trading Corp. … which promises a return of 2.3 percent per day or 35 percent after 15 days has the characteristics of a Ponzi scheme,” according to the order.

The investment plan for [Silverlion] It also defrauds investors because it deceives the investing public by showing that they have the authority to deal in securities.”

Silverlion’s deregistration followed the successful execution of a search warrant against Silverlion by the combined forces of the SEC and the National Bureau of Investigation last year. They were able to seize bundles of cash, coupons, and other devices that were supposed to be used to pay future dividends to existing investors.

While charges have been filed against Silverlion Livestock Trading Corp. and its officers and agents, its founders Ryan Cagod Ladoing and Renan Lara Ladoing are still at large.

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