Article by:
Joann Villanueva
MANILA – The Securities and Exchange Commission (SEC) revoked the certificate of incorporation of Dual Fuel Petroleum Corp. for illegally soliciting public investments.
The SEC also ordered the firm and its officials to pay PHP2 million.
Citing the company’s Articles of Incorporation (AOI), the SEC said Dual Fuel is authorized to establish, operate, manage and maintain gas stations and engage in franchising.
“It is prohibited from soliciting investments from the public and issuing investment contracts,” it said.
The SEC’s Enforcement and Investor Protection Department (EIPD) found the company offered unlicensed investment contracts.
“Under its scheme, Dual Fuel partnered with Legends Petroleum Corporation, a franchising company, to entice the public to become franchise co-owners for a minimum investment of PHP500,000, with a promised quarterly profit for 20 years. The gas station operator offered 280 franchisee co-owner slots for eight gasoline stations,” it said.
The SEC said the scheme resembled a Ponzi scheme, using new investments to pay existing investors without legitimate operations.
“Considering that nowhere is it stated in its primary purpose that Dual Fuel Petroleum is authorized to engage in the selling or offering for sale of securities to the public…the activity of [the company] of selling or offering for sale of investments is considered an ultra vires act and therefore constitutes serious misrepresentation,” the SEC order said. (PNA)
Log in with Google