The Philippine Securities and Exchange Commission announced that the Department of Justice has indicted two officers of Cebu-based Fergus, Inc. for allegedly soliciting investments from the public without authorisation, following a complaint filed by the SEC. In a resolution dated September 29, prosecutors found prima facie evidence to charge Fergus President Jefferson M. Acas, Jr. and Corporate Secretary and Chief Finance Officer Rosemarie V. Mayorga with violations of the Securities Regulation Code and the Financial Products and Services Consumer Protection Act, in relation to the Cybercrime Prevention Act. The charges include alleged breaches of Securities Regulation Code provisions on selling securities without an SEC-approved registration statement, operating as a buyer or seller of securities without SEC registration, and employing fraudulent schemes or misstatements, with penalties increased by one degree where committed through information and communications technologies. Prosecutors also recommended criminal charges for investment fraud under the Financial Products and Services Consumer Protection Act, tied to the SEC’s findings that Fergus offered securities in the form of investment contracts via an automated trading software scheme, requiring a minimum investment of USD 250, and that claimed “e-books or materials” supporting the offering were not substantiated. The case followed an investigation by the National Bureau of Investigation after Australian clients alleged they were defrauded, and the SEC noted that while Fergus was registered as a business process outsourcing company, its articles of incorporation prohibited accepting investments from the public and issuing investment contracts.

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