The Department of Justice (DOJ) has filed criminal charges against Silverlion Livestock Trading Corp. and its officers for its unauthorized solicitation of investments from the public, sustaining the findings of the Securities and Exchange Commission (SEC).
In a resolution dated December 2, state prosecutors found probable cause to charge Silverlion, its chief executive officer Ryan Cagod Ladoing, incorporator Renan Lara Ladoing its officers and agents identified as Rosemarie Alvarez Guzman, Neña Ewayan Algoy, John Paul Dellara Lopez and Michael Villalobos Berja, for violations of the Securities Regulation Code.
The Ladoings are still at large.
State prosecutors also found probable cause to charge Ryan Ladoing for violation of the Comprehensive Firearms and Ammunition Regulation Act.
“[Silverlion] falsely represented to the public that it is engaged in the business of trading gold and sale of processed meats, beauty products and other products which are in demand in the market to generate profits to be used as payment for the return of capital to investors together with its high return of interest,” the DOJ resolution read.
“[B]ut in truth and in fact, the high returns paid to the early investors are sourced from the capital contributed by later investors, to the damage and prejudice of later investors.”
The DOJ said the offer and promotion of Silverlion is similar to a Ponzi scheme presenting “too-good-to-be-true promises,” wherein the so-called “investment” offers impossibly high returns and pays these returns to early investors out of the capital contributed by later investors.
“It is clearly stated in the Articles of Incorporation of [Silverlion] that the certificate does not authorize the corporation to issue, sell, or offer for sale to the public securities.”
The SEC Zamboanga Extension Office (ZEO), together with the National Bureau of Investigation, filed a criminal complaint against Silverlion before the DOJ on November 28, for its unregistered offering of securities to the public.
The filing of the complaint followed the implementation of a search warrant against Silverlion. Authorities were able to seize bundles of cash, vouchers and other devices that were allegedly supposed to be used for the upcoming payout of profits to its existing investors.
Investigations by the SEC ZEO showed that Silverlion had been offering and selling investment packages to the public with guaranteed returns of 35 percent within just 15 days. With this, investments ranging from P1,000 to P100,000 could yield returns worth P1,300 to P130,000, respectively.