The Securities and Exchange Commission (SEC) has filed a criminal complaint against New Seataoo Corporation Seataoo Information Technology OPC (Seataoo OPC) and their officers for soliciting investments without the necessary SEC license.

The complaint charges the companies and their officers with violating multiple sections of the Securities Regulation Code (SRC), the Cybercrime Prevention Act, and the Financial Products and Services Consumer Protection Act.

The named individuals include Anna Rose Jangao Tero, Jonathan Tuazon Garcia, Danny Tuazon Sudaria, Lew Yean Yee, Seow Kai Sheng, Dylan Lim and Seataoo OPC’s single stockholder, Jayson Corono Clidoro.

The SEC received complaints from investors who were enticed by Seataoo Group’s social media ads on Facebook and YouTube. These investors claimed to have deposited amounts ranging from P20,000 to P2.3 million, expecting returns. The Seataoo Group required investors to deposit money to process online orders and promised profits of 7 percent to 12 percent. It also offered a referral program with a 3 percent commission.

“This scheme affirms that the deposited funds are in reality, investments since they are not limited to transactional payments directly tied to specific purchases. In fact, complainants demand the return of their investments plus profits,” the complaint read.

“This mandatory funding of individual accounts required of Seataoo’s members/online sellers is a device used by Seataoo to mask its offer/sale of unregistered securities, and obtain investments from the public without having to secure the requisite license from the Commission,” it added.

The SEC says Seataoo’s unauthorized investment contracts constitute fraud under the SRC.

In June 2024, the SEC revoked the registration of New Seataoo Corporation and Seataoo OPC for multiple violations, including the Revised Corporation Code and the SRC. The companies appealed, but the SEC denied their appeal on 26 December 2024, for lack of merit.

An investigation confirmed that Seataoo Group was offering securities through an unregistered “dropshipping e-commerce platform” investment scheme.

The SRC prohibits selling or offering securities to the public without SEC approval. The Cybercrime Prevention Act increases penalties for crimes committed using technology.

Summary of SEC Criminal Complaint Against Seataoo

The Securities and Exchange Commission (SEC) has filed a criminal complaint against Seataoo for violating securities laws and engaging in fraudulent activities. The complaint outlines Seataoo’s illegal solicitation of investments under the guise of an e-commerce business, where investors were encouraged to deposit funds with promises of high returns.

Key Points:

1. Unregistered Investment Scheme
   • Seataoo operated without the necessary SEC registration to solicit or sell securities.
   • The business model resembled a Ponzi or pyramiding scheme, where profits depended on new investor deposits rather than actual e-commerce transactions.
2. Fraudulent Representations
   • Seataoo misrepresented its platform as a legitimate dropshipping business.
   • Investors were required to deposit money into their accounts, with the false assurance that their funds would generate guaranteed earnings.
3. Massive Financial Losses
   • Many investors lost significant amounts of money, as the platform suddenly ceased operations.
   • Complaints from victims led the SEC to conduct an investigation, confirming the fraudulent nature of Seataoo’s business model.
4. Legal Actions and Consequences
   • The SEC revoked Seataoo’s license and filed criminal charges against the company and its operators.
   • The complaint seeks penalties for violating the Securities Regulation Code (SRC) and possible imprisonment for those responsible.

Implications:

• Investors who suffered losses may join the legal case and file claims to recover funds.
• The case serves as a warning against unregistered online investment platforms disguised as e-commerce businesses.