SEC stops property developer in El Nido from selling membership shares

SEC orders cessation of selling or offering for sale club membership of Seashore Beach Club which has property in Batangas and Palawan.

The Securities and Exchange Commission (SEC) has issued a Cease and Desist Order against Seashore Beach Club, Inc. (Seashore), a property development company selling membership shares for its high-end resort projects in Batangas and El Nido.

The company is engaged in the development of two high-end properties – the Seashore Beach Club in San Juan Batangas and Treasure Point located in Barangay Sibaltan, El Nido.

The order emanated from an inquiry from prospective buyers who had conducted inquiries with SEC about the investment offers being made by the company.

In the website of SEC, it states that the Enforcement and Investor Protection Department (EIPD) warned that the company has no secondary license to sell or offer for sale securities to the public.

“SEASHORE is not a registered issuer of mutual funds, exchange traded funds, propriety /non-proprietary shares or membership certificates, time-shares and registered but unlisted equity securities under Section 17.2,” the SEC stated.

A stock corporation registered with SEC on June 16, 2016, Seashore has been selling membership shares for its high end resort projects in San Juan, Batangas and in Barangay Sibaltan in El Nido. The membership shares were reportedly being sold for P392, 000 payable in within a 3-year period and may be reserved for a P10, 000 fee.

It’s El Nido property, dubbed Treasure Point El Nido, is supposedly located in the village of Sibaltan and is conceptualized to become a “Maldives’- inspired” exclusive beach property featuring among others cottages that have glass-bottomed underwater views.

The SEC has ordered Seashore Beach Club, Inc. and its partners and officers including agents to immediately cease and desist under pain of contempt from engaging in activities as selling or offering of club membership.

It also ordered for the cessation of its internet presence relating to investment activities.

Amiel Leyco, SEASHORE’s Marketing Director, said they are already complying with the requirements of SEC which are secondary license and licensing of its brokers or dealers and is prepared to pay the imposed fine of P3.9 million.

“Lahat ng requirements na kailangan nila na sent ko na sa kanila. Naghihintay na lang ako ng feedback nila in terms of penalty for the San Juan property (The Seashore Beach Club) kung saan doon kami nagbenta,” Leyco said.

He claimed however that they have not yet been selling shares of its El Nido property and that the SEC ruling only pertained to their Seashore Beach Club property in Batangas where they had already sold shares.

“Hindi pa kami nagbebenta dyan (Palawan). Nag e LOI (letter of intent) pa lang kami,” he said.

Leyco also blamed one of their agents whom he said they had entrusted money to facilitate the requirements with SEC.

“Ang totoong nangyari dyan, ang nag aayos ng mga papeles namin ay iniwanan kami sa ere. Si Miss Tess (full name withheld) ang may kasalanan lahat nyan,” he said.

 

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