The Securities and Exchange Commission (SEC) has formally filed a complaint at the justice department against Celso G. de los Angeles Jr., the founder of the bankrupt Legacy Group of financial firms, for violating the Securities Regulatios Code.
The other respondents are Legacy Consolidated Plans, Inc., one of the pre-need firms linked to the Legacy group, and its top management officials. The justice department received SEC's 21-page complaint on February 13.
SEC, currently the regulator of pre-need firms, cited in its complaint that Legacy and its officials violated Sections 8 and 26 of the SRC. It said the respondents breached mandated process for registering securities and engaged in fraudulent transactions. It also alleged that they did not follow new rules on the registration and sale of pre-need plans of the code.
These violations involve monetary penalties and/or imprisonment.
According to the SEC, the pre-need firm “has deliberately offered and sold unregistered securities despite the fact that Legacy has not filed any registration statement nor secured a secondary license from the SEC to issue, offer and sell securities to the public”.
The other company officials in the SEC complaint were Carolina hinola, Elvira Garcia, Madeline Cobarrubias, Cecille Invencion, Monina Vierneza-Dio, Bishop Ignacio Soliba, Christine Cruz-Limpin, Namnama Pasetes, Edgardo Marasigan, Elvira Nebre, Teresita Tica, Agnes Santiago, Josefina Castaneda, John and Jane Does.
The SEC has asked the DoJ to file criminal information against Legacy and its key officials.
“It is likewise prayed that during the pendency of the proceedings, this Honorable Office cause the said respondents to be placed in the watchlist of the Bureau of Immigration,” stated the SEC complaint.