THE Securities and Exchange Commission (SEC) brought four lending companies before the Department of Justice (DoJ) for criminal prosecution for operating unregistered online lending platforms (OLPs).
In a press release, the regulator’s Enforcement and Investor Protection Department (EIPD) filed on Dec. 20 a criminal complaint against Suncash Lending Investors Corp., UCash Lending Investors Corp., Suncredit.ph Finance Corp., and ECredit Finance, Inc.
It cited the entities’ violation of Republic Act No. 9474 or the Lending Company Regulation Act (LCRA) and Republic Act No. 8556 or the Financing Company Act (FCA).
The complaint identified the entities’ president and beneficial owner Qi Lu and director Zhu Junfeng. It also implicated the companies’ incorporators, directors and officials.
The other officials cited were identified as Chang Yuting, Joyclyn V. Pelayo, Chang Tao, Bryan Dordas Pelayo, Jasmin Tabjan Vianzon, Jayson Lee, Meng Jie, Xiaofang Song, Danilo Felicilda, Roger Publico, Yaping Liu, Xianming Tian, Shiling Xu, Xiaobo Pan, Sheila Pagkalinawan, and Xiaojing Luo.
As part of the SEC’s crackdown against unregistered lenders, it previously implemented a warrant to search, seize, and examine computers against Suncash.
The move was together with the Philippine National Police Anti-Cybercrime Group, Eastern District Anti-Cybercrime Team, Manila Police District, and the Special Weapons and Tactics Philippines.
The Makati Regional Trial Court Branch 147 issued the search warrant against Suncash after it received several complaints.
Through the search warrant, it was discovered that the other lending companies — UCash, Suncredit, and ECredit — had been operating with Suncash in its headquarters in Sampaloc, Manila.
The operation resulted in the arrest of 83 individuals who were identified as operators, managers, employees, and agents of Suncash.
According to the SEC, lending and financing companies are required to report all their existing OLPs to the commission, which Suncash has violated after it was found to be operating three unregistered OLPs: Suncash, Flashloan, and Peso Pautang.
“[This is] contrary to what is stated in its affidavit of compliance that it operated no other OLP than Suncash,” the regulator said.
The EIPD also found out that Suncash operated the unregistered OLPs to defy the moratorium imposed on the registration of new OLPs starting Nov. 5, 2021.
It charged Suncredit and ECredit for as they were found to be the operators of Peso Pautang and Flashloan, respectively.
“We are therefore executing this Complaint-Affidavit to attest to the truth of the foregoing, to serve as basis for the finding of probable cause against respondents for violations of Section 12(2)(a), (3)(a) of the [LCRA] and Section 1(a) and 2(a) of the [FCA] and other crimes as the Honorable Prosecutor may determine on the basis of the above-cited facts,” the complaint read. — Justine Irish D. Tabile