Philippine DOJ Pursues Criminal Case Against Modesto OPC for Soliciting Public Investments Without SEC Approval

The Philippine Department of Justice (DOJ) has ordered the filing of criminal charges against Modesto Cardano Market Cap Tr3ding Services OPC and its officials for illegally soliciting investments from the public. The case stems from a complaint filed by the Philippine Securities and Exchange Commission (SEC).

Named in the resolution are the company’s sole stockholder, director, and president, Modesto Clidoro Miravalles, along with nominees Tonio Miravalles and Karissa Alviar. They face charges for violating Sections 8 and 28 of the Securities Regulation Code (SRC), in relation to Section 6 of the Cybercrime Prevention Act.

Section 8 (SRC) prohibits selling or offering securities without SEC registration. Section 28 (SRC) requires registration of all persons engaged in the business of buying or selling securities. Section 6 (Cybercrime Prevention Act) raises penalties for crimes committed using information and communications technology.

SEC Investigation

The SEC’s Enforcement and Investor Protection Department (EIPD) began monitoring Modesto OPC in March 2024 after the firm failed to submit required incorporation documents. Investigators later found that the company is promoting investment schemes through social media.

Under its unauthorized scheme, Modesto OPC offers securities in the form of investment opportunities through various plans, such as compensation profit and expert plans, promising guaranteed monthly returns of up to 10%.

DOJ Resolution

According to the DOJ, SEC certifications confirm that Modesto OPC is not registered as a securities issuer and has no pending application for registration. The resolution stressed that public investment solicitation constitutes securities issuance and must be registered with the SEC before being offered.

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