SEC warns of financial scams
Posted: 11:29 AM | Sept. 13, 2004
Elizabeth L. Sanchez
Inquirer News Service
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THE SECURITIES and Exchange Commission (SEC) has been receiving numerous complaints from irate victims against five companies, which could indicate the resurgence of illegal boiler room operations.
SEC Commissioner Joselia Poblador said the corporate watchdog was firming up its case against these firms and would divulge the names of these firms once cases were filed.
Boiler room operations usually involve unqualified sales people that use high pressure tactics, or misleading information, to sell stocks, commodities or land to potential investors, without a license.
"We are still checking whether the ones we've caught [before] are the same as the ones that resurfaced," Poblador said.
She said most of the complaints are from foreign investors.
"It is giving our country a bad name. We don't want to be tagged as the haven for boiler room activities. These firms check if the regulator is lowering its guard and then they start coming back," she said.
Since 2000, the SEC has issued cease and desist orders against Goldberg & Partners, United Capital Management, Oxford International Management, Wells Chadwick, Barclays Group Inc. & New World Financial Group, Sherman Brothers Management, Bradford Kempner Management Services, Muller & Sons Securities, Dukes & Company Securities, Knowie & Sachs, Saxon & Swift, Newport Pacific Securities, Worldwide Investors, Asia World Online, and Bradshaw Global Asset Management.
SEC officials also said one complaint recently filed with the SEC involved 20,000 dollars. Poblador said the SEC was coordinating with its counterpart in Malaysia to gather evidence from victims in that country.
SEC officials said boiler room operators usually prey on people in developing countries, including Thailand, Philippines, and Malaysia.
Poblador last month said the Commission has been alerted of renewed boiler room activities in Cebu City, Pampanga province, Davao City, and in Manila.
Former SEC chairperson Lilia Bautista said some of these boiler room operators pretended to be call centers.
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