Palawan Entre-Business Company, Alexis M. Valle and Joseph G. Chavez

Securities and Exchange Commission Republic of the Philippines Department of Finance

In the matter of: PALAWAN ENTRE-BUSINESS COMPANY, ALEXIS M.VALLE AND JOSEPH G.CHAVEZ

SEC CD0 Case No. 11-16-038

PROTECTION DEPARTMENT, ENFORCEMENT AND INVESTOR

Movant.

CEASE AND DESIST ORDER

filed on 29 November 2016 by the Enforcement and Investor Protection This resolves the Motion for Issuance of Cease and Desist Orderi (Motion)

Department (EIPD) praying that PALAWAN ENTRE-BUSINESS COMPANY (PALECO) and its representatives/agents be enjoined from selling and/or offering for sale securities in the form of investment contracts until the requisite registration statement is duly filed with, and approved by, the Commission and the corresponding license to offer/sell is issued.

PALECO is a partnership, formed by Alexis M. Valle (Valle) and Joseph G)

Company Registration No. PG201609364.2 Its principal office is located at Kusay Inn Building, Brgy. Sta. Monica, Sta. Monica Highway, Puerto Princesa City, Palawan. Its primary purpose, as stated in its Articles of Partnership, is: Chavez (Chavez), registered with the Commission on 12 May 2016 under

"To engage in the business of buying, selling, marketing, supplying. distributing, trading of goods such as construction supplies and materials, beauty products and other related products on wholesale/retail basis. Provided that the retailing activity of this company shall not tantamount to pyramiding, multi-level marketing nor in networking; without acting as an investment adviser or fund manager of an investment company close-end or open-end issuer or selling agents thereof_ provided that it shall not act as stock investments and/or investment contracts from public investors."3 commodity/financial futures exchange/broker/merchant, financing company, and time shares/club shares/membership certificates broker or dealer in securities not solicit, take, accept and/or issue investment company, investment house, transfer " agent,

Usman reporting PALECO's investment-taking activities in Palawan. Then, on 11 July 2016, EIPD received a letter from Rosenda G. Fortunado, Provincial Director The EIPD, on 07 July 2016, received an email4 from a certain John Vincent

Annex "A of the Motion. Dated 11 November 2016 Id., Annex "C" Id. Annex "B

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outs of PALECO's power point presentation5 in support of its report. Essentially. of the Department of Trade and Industry of Palawan (DTI-Palawan), reporting again of PALECO's investment-taking activities. DTI-Palawan presented print-

the reports reveal that for a minimum investment of Php 3,500 for 1 account, the investor will earn Php 10,000 within 90 working days. Specifically, the DTI report shows that for each package6 or accounts, there is a corresponding "Guaranteed Profits Program", to wit:

PHP 3,500 PACKAGE SPONSOR REWARDS PHP 500 ROYALTY (50%) SPONSORS PHP 250 working days) TOTAL PROFIT& SHARES (90 PHP10,000 PHP 10,500 PHP 24,500 PHP 3,500 PHP 1,500 PHP 1.750 PHP 750 PHP 70.000 PHP30,000

PHP 217,000 PHP 108,500 PHP 52,500 PHP 15,500 PHP31,000 PHP 7,500 PHP 15,500 PHP 7,750 PHP 3,750 PHP 150,000 PHP 310,000 PHP 620,000

It was also stated in the DTI report that for a certain number of accounts. there are product packages to be given, to wit:

Number of Accounts 3 (Php 10,500.00) 79 (Php 24,500.00) 1(Php 3,500.00) 2 ct-oil 30 ml; 30 kilos rice; 1 sedap noodles; 1 maggi kari; 1 2 bottles ct.-oil (30 ml); 10 kilos rice 1 ct-oil 250 ml; 1 maxi 99 shampoo; 1 Jergens lotion; 1 Biozip Power soap; 10 kilos rice Products Package

1510 (Php 52,500.00) 1 ct-oil 250 ml; 4 ct-oil.30 ml.; 40 kilos rice; 1 Jergens Lotion; 1 peanut butter small; 1 ionic soap; 1 alkaline drops; 1 organic wonder rub

Biozip Powder; 1 alkaline drops; 1 organic wonder rub; 1

3111 (Php 108,500.00) 6212 (Php 217,000.00) 50 kilos rice; 1 ionic soap; 1 alkaline drops; 1 10-in-1 coffee; 1 cream; 1 Jergens lotion; 1 Hygiene; 1 gluta 60's; 1 Barako Coffee peanut butter; 1 10-in-1 coffee choco; 2 organic wonder rub; 2 sedap noodles; 2 Maggie Kari; 4 Biozip powder soap; 1 peanut butter big 100 kilos rice; 1 ct-oil 250 ml; 1 ct-oil 30 ml; 1 muscle relaxant; 1 ampalaya capsule;1 gluta milk; 1 fruit enzyme;1 shower

operations. The EIPD secured Certifications13 from the Commission's: (1) Company Registration and Monitoring Department (CRMD) stating that PALECO This prompted the EIPD to conduct"an investigation on PALECO's

6 Id.. Annex "D-15 9 Id.. Annex "D-9" 5 Id. Annexes "D-1" to "D-16" 7 Id.. Annex "D-7" 8 id., Annex "D-8" 10 Id., Annex "D-I0 H id.. Annex "D-1 13 a.. Annexes "E" "F" and "G" 2d..Annex D-12

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has not been issued a secondary license as a Broker and/or Dealer of Securities,

Investment House and Transfer Agent nor is there any pending application for Dealer in Government Securities, Investment Adviser of an Investment Company

the said secondary licenses;(2) Markets and Securities Regulation Department (MSRD] stating that PALECO has. gistered any securities pursuant to

SRC and therefore is not licensed to'offer or sell such securities to the public. Section 8 and 12 of the Securities Re issue to PALECO a Permit to Sell Finance Department (CGFD) stating mutual funds including exchang shares and registered but unlisted equity gulation Code (SRC) nor did the Commission aded funds, membership certificates, time that PALECO has not registered issuer of securities under Section 17.2 (a) of the and (3) Corporate Governance and

An EIPD Team went to Puerto Princesa City, Palawan on 12 August 2016 to further verify and investigate PALECO's operations. The EIPD Team was able to obtain sworn affidavits of investor-complainants of PALECO, to wit: Brigilda P. Riego, Rozalina O. Abella, Yolanda Salunson, Marian R. Tuscano, Beverly D. Bongcales, Salvador A. Bungcales, Mario R. Bengano, Rhodora B. Moreno, Freda F. Macatangay, and Jean Marie.P. Pastellero. .

In their statements, all claim that PALECO promised them that for every investment of Php 3,500.00 for one account,they.would receive a pay-out of Php 10,000.00 within a given period. They.:also aver that they were given products packages that correspond to thenumber of accounts they invested. All of the complainants presented to the EIPD Team their. receipts, cash vouchers, application forms and other documents.to prove that they invested in PALECO.

Brigilda P. Riego states that, on 16 May2016, she invested Php 3,500.00 in PALECO, which promised a return of Php 10,000.00 within 60 days. When, the period given arrived, she was able to receive her pay-out of Php 10,000.00. However, her husband and her son; who also invested in PALECO were not able to receive the promised return.i4: She presented PALECO's Entrepenuer Application Forms of her investors.15

Rozalina O. Abella avers.that, on 13, 14 & 17 June 2016, she invested the amount of Php 59,500.00 for 17 accounts with a promised return of investment amounting to Php 170,000.00 to be paid on 23, 24 & 27 July 2016.When the due

also presented PALECO's Entrepenuer.Application Forms of her investors.17 date arrived, she was not able to receive the promised return.16 She presented

invested the amount of Php 68,000.00 equivalent. to 20 accounts for a promised return of investment amounting.to Php 200,000.00 to be paid on 23-27 July and 05 September 2016. However, as to date, she likewise did not receive the Yolanda Salunson asserts that, on .23-27. May and 19 June 2016, she

17 id. Attachments of Annex "J". 15 Id. Annexes "I-3" to "-16" I6 d. Annex "J". I+ Id.. Annex "

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promised returns.18 She presented PALECO's cash vouchers and Entrepenuer Application Forms of her investors.19

Marian R. Tuscano states that she was promised that for an investment of

she and other investors placed the amount to Php 287,000.00 with a promised Php 35,000.00, the promised return will be Php 100,000.00 within 60 days. Thus

investors were not able to receive any return of their investment.20 She presented PALECO's cash vouchers and Entrepenuer Application Forms of her return of investment amounting to Php 820,000.00. However, she and her

investors.21

Beverly D. Bongcales states that she was promised that for an investment of Php 35,000.00,the promised returnwill be Php 100,000.00 within 40,45 and 60 days. Hence, she, together with other investors, placed the amount of Php 150,500.00 with a promised return.of Php 430,000.00. However, she and her

PALECO's cash vouchers and Entrepenuer Application Forms of her investors.23 investors were not able to receive any return of his investment.22 She presented

investment of Php 35,000.00, the promised return will be Php 100,000.00 within Salvador A. Bungcales :declared that he was promised that for an

40, 45 and 60 days. Thus, he and other.investors placed the amount of Php 164,500.00 with a promised return of Php 470,000.00. However, he and his

vouchers and Entrepenuer Application Forms of his investors.25 investors did not received the promised returns.24 He presented PALECO's cash

Mario R. Bengano claims that, on 22 July 2016, he invested the amount of Php 24,500.00 for 7 accounts with a promised return of Php 70,000.00 to be paid

returns.26 He presented his Entrepenuer Application Form.27 on 22 July 2016. However, as to date he likewise did not receive the promised

Rhodora B. Moreno states that, on 15 & 18 June 2016, she, together with other investors,placed in PALEC0 the amount of Php 154,000.00 for 44 accounts with a promised return of Php 400,000.00 to be paid on 25 & 29 July 2016. However, they did not received the promised return on the due date.28 She

Application Forms of her investors.29 presented identification cards, PALECO's cash vouchers and Entrepenuer

23 ia.Attachments of Annex "M". 20 id., Annex "L." 21 Id. Attachments of Arinex "L" 22 d.. Annex "M". 26 id.. Annex "O". -27 ia. Attachments of Annex *O" 18 id., Annex "K". 2+ id., Annex "N" 25 id. Attachments of Anr 28 d.. Annex "P" 29 id. Attachments of Anr 19 id. Attachments of Annex "K". ex "N"

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Freda F.Macatangay claims that she and her husband placed in PALECO

Php 115,500.00. Similar to the others, she and her husband were not able to the amount of Php 40,000.00 with a promised return of investment amounting to

Entrepenuer Application Forms of her investors.31 receive the promised return.30 She presented PALECO's cash vouchers and

Jean Marie P. Pastellero avers that in May and June 2016, she and other investors placed in PALECO the amount'of Php 689,500.00 for 197 accounts with a promised return of investment amounting to Php 2,068,500.00 to be paid in July 2016. However, they were not.able to receive the promised return.32 She presented PALECO's cash vouchers and Entrepenuer Application Forms of her investors.33

and Entrepenuer Application Forms;34 from other investors of PALECO that were filed with DTI-Palawan. These .complainants also claim that they invested in EIPD also received numerouscomplaints, with PALECO's cash vouchers

PALECO but were not able to receive the promised returns.

Thereafter, EIPD sent notices to Valle and Chaves inviting them for a conference to shed light on PALECO's investment activities. However, EIPD avers that "the notices were returned with the information that the addressees already moved out."35

The foregoing considered, we now 'resolve the case on the merits based on the allegations and evidence presented in the. Motion.

We find merit in the Motion..

Examining the evidence presented, EIPD was able to establish that

for 1 account, the said investor will earn Php, 10,000.00 within a period of 40, 45 PALECO promises its investors: that for.a:minimum investment of Php 3,500.00 or 60 days. Aside from the promised return, PALECO gives its investors product packages depending on the number of accounts invested.

PALEcO's scheme is considered as an investment contract. An "investment contract" means a contract, transaction or scheme (collectively 'contract') whereby a person invests his money in a common enterprise and is led to expect profits primarily.from the efforts of others. An investment is presumed to exist whenever a person seeks to. use the money or property of others on the promise of profits. A common enterprise, on the other hand, is

a common enterprise, even if..the .promoter receives nothing more than a broker's commission. deemed created when two.(2).or more investors'pool' their resources - creating

30 d.. Annex "Q" 31 id. Attachments of Annex "Q". 32 Id. Annex "R". 33 id. Attachments of Annex "R" 35 Paragraph 17 of the Motion. 34 a.. Annexes "S" to "-50".

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The concept of an investment.contract in the Philippines is of American origin. It traces its roots from the US Supreme Court cases of SEC v. W.J. Howey Co.36 and SEC v. Glenn Turner Enterprises, Inc.37. It has since been adopted in the Philippines, in the case of Power"Homes Unlimited Corporation v. Securities and Exchange Commission38, where the Supreme Court held that an investment contract in our jurisdiction, to be` a security subject to regulation by the Commission, must have the following elements: (1) an investment of money; (2) in a common enterprise; (3) with expectation of profits; and (4) primarily from efforts of others.

investor relinquishes control over his or her funds and submits their control to Under the foregoing elements of an investment contract, whenever an

another for the purpose of deriving profits from them, he or she is in fact investing in a security.39

Securities which are "shares, participation or interests in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character"40 and includes an investment-contract.41 As a rule, securities should not be sold statement duly filed with, and approved by, the Commission42. or offered for sale or distribution within the Philippines, without a registration

In the instant case, EIPD was able to establish, through sworn statements of complainants and documents,: the four (4) requisites of an investment contract, to wit:

enterprise or venture in a mannier that subjects himself to financial loss.43 In the An investment of money occurs when an investor commits money to an

by receipts and vouchers evidencing payment, illustrates that monies were instant case, the statements of numerous investor-complainants, accompanied placed or invested in PALECO. Moreover, the actual monetary value of the alleged product packages is not commensurate to the money placed in PALECO. Examining the items included in the :product packages, it reveals that the investors are enticed not merely by the products, but more importantly, by the possibility of deriving profits from PALECO in the form of passive income. Evidence further show that there is a sales pitch which stresses the amount of

there is clear emphasis on the opportunity to earn substantial income by simply money a participant can make by justplacing money in PALECO. In other words, placing money in PALECO.

39 investment Co. Institute v. Camp. 274. F:Supp:624 (D.D.C. 196). 37 474 F. 2d 476,414 U.S.821, 94 (1973) 43 SeC v. International Mining Exchange, Inc., 5}5 F. Supp. 1062 36 328 U.S. 293, 66 S. Ct. 1100. 90 L. Ed. 1244, 1'63:A.L:R. 1043 (1946). 38 G.R. No. 1 64182, 26 February 2008 40 Section 3.I., SRC. 41 Section 3.t.(b), Id. 42 Section 8.1. of the SRC

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investors in the same investment enterprise; achieved by pooling the invested enterprise".44 One of these tests: is the horizontal commonality approach. Under investment of funds or (ii the sharing of profits.45 The joint participation by funds for a common purpose, is required in order to satisfy the common this test, the determination of whether a transaction satisfies the commonality element of the modified Howey test involves an inquiry into whether the said transaction involves the joint participation'of more than one investor in (i) the Several tests have evolved.to determine what constitutes "common

enterprise element.46

in order to pay earlier investors: It is evident that the source of the promised monies, placed in PALECO by these investor-complainants, are pooled together returns is the monies invested by incoming investors. at least Php 3,500.00 in PALECOin the hope of earning high profits. These In the instant case, there.were several investor-complainants who placed

the development of the initial investment; or participation in earnings resulting from the use of investors'funds. In PALECO's scheme, it is apparent that investors are enticed to place investments because of the promise of high return amounting to almost 300% of.aminimum investment of Php 3,500.00 within 40 45 or 60 days. Profits may be generated from.either capital appreciation resulting from

must depend primarily from the efforts of others. In Turner47, the US Supreme To be considered as an investment. contract, the expectation of profits

managerial efforts which affect the failure or success of the enterprise". other than the investors are undeniably significant ones, those essential Court adopted a more realistic test which is "whether the efforts made by those

and promotes the investment scheme.48 It operates an office in Palawan. It also In the instant case, it is.PALECO, which develops, administers, maintains

and monitor their accounts. Likewise, the EIPD is able to show that there is no maintains a website (http://www.paleco.biz/) where its members can inquire

the promised profit. Investors merely place their monies in PALECO and wait for concrete productive enterprise that.an investor must perform in order to earn

the promised returns. To reiterate,it.is obvious that the value of the product packages (oil, rice, shampoo, etc.) given in return for an investment is not commensurate to the amount of money placed in PALECO. Investors are mostly enticed to invest because of the.promised high returns, which is essentially derived from monies of incoming investors. Clearly, investors primarily earn from the efforts of others.

found to be offering/selling investment contracts to the public. Finding all the elements of an investment contract present, PALECO is

46 Note 27. citing Wasnowic v. Chicago Bd. of Trade 352`F Supp 1'066. 44 In the Matter of Octopus Network; Inc, SEC-PED Case.No.98-2220, 22 May 1998 45 Note 27. Citing 69 Am Jur 2d citing Stenger.v. R.H. Love Galleries, Inc. 741 F2d I 44. 47 Note 28. Supra. +8 Note I1 9. Supra.

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As enunciated in Power Homes49, thus:

capital markets depend on.the investing public's level of confidence in the system." "As an investment contract that is security under R.A. No. 8799, it must be registered with public respondent SEc, otherwise the SEC cannot protect the investing public-from fraudulent securities. The strict regulation of securities is founded on the premise that the

In the instant case, certifications from CRMD, CGFD and MSRD show that

contracts to the public. Also, it is.not licensed as a broker, dealer, salesman or PALECO is not authorized to.offer/sell securities in the form of investment

associated person to offer/sell securities to the public.

In view of the above discussions, we see three (3) violations by PALECO and the persons acting for it.

First, the non-registration of securities. Under the SRC, unless what is involved are exempt securities or exempt transactions which are not covered by the requirement of registration, securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.5o Prior to such sale, information on the securities, in such form and with"such substance as the Commission may prescribe, shall be made availabie to each prospective purchaser.51 As discussed above, PALECO is engaged in the offering and/or selling of securities in the form of an investment contract without prior-registration with the Commission.

person of any broker or dealer. The law provides that no person shall engage in Second, the non-registration as:-broker, dealer, salesman, or associated

the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the Commission.52 In the instant case, PALECO and/or all persons acting for and on their behalf are acting as either broker or dealer or salesman without being registered as such.

shall possess or exercise any corporate powers except those conferred by the Third, the commission of ultra vires acts. No corporation or partnership

Corporation Code or by its Articles of Incorporation/Articles of Partnership and

conferred.53 In that instant case, PALECO's primary purpose explicitly does not authorize it to engage in the business of soliciting and accepting investments and except such as are necessary or.incidental to the exercise of the powers so

money placements from the public.

53 Section 45, Corporation Code of the Phippines 49 Note 28 Supra. 50 Section 8.1, SRC. 52 Section 28.1. SRC S1 id

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be enjoined'pursuant to Section 64 of the SRC which provides that: The violations committed by PALECO and its agents should immediately

Section 64. Cease and Desist.Order: - 64.1. The Commission, after proper investigation or verification, motu proprio or upon verified complaint by any aggrieved party, may issue a cease and desist the act or practice, unless restrained, will operate as a fraud on order without the necessity of a prior hearing if in its judgment investors or is otherwise likely to cause grave or irreparable injury or prejudice to the investing public.

From the foregoing there are two essential requisites before the Commission may issue a cease and desist order: First, there must be a proper investigation or verification54. In the instant case, the EIPD was able to conduct a thorough investigation on PALECO's investment-taking activities. It was able to

was able to present documentary evidence such as receipts, vouchers and other obtain numerous sworn statements from. investor-complainants categorically stating that PALECO is soliciting investments from the public. Aside from that, it documentary evidence55 supporting its. allegation of PALECO's investment activities.

Second, there must be a finding that the act or practice, unless restrained will operate as a fraud on investors or is otherwise likely to cause grave or irreparable injury or prejudice to the investing public56. It should be noted that without a license from the Commission; PALECO's investment-taking activities cannot be regulated nor supervised. Thus, it would have a wide latitude in crafting and implementing its investment schemes, and if it remains unregulated or unsupervised, likely defraud the investing public. And in fact, it has already defrauded several complainants by enticing them to invest without paying the promised profit.

In Primanila Plans,Inc.: :vs. Securities and Exchange Commission57, the Supreme Court expounded on the Commission's duty on the protection of the investing public, to wit:

issued by the SEC motu proprio, it being unnecessary that it results from a verified complaint from an aggrieved party. A prior hearing is issue a cease and desist order that aims to curtail fraud or grave or irreparable injury to investors. There is good reason for this "The law is clear on the point-that acease. and desist order may be also not required whenever the Commission finds it appropriate to provision, as any delay in the restraint of acts that vield such results can only generate further injury to the public that the SEC is obliged to protect."

57 G.R. No.193791, August 6.2014. 54 Securities and Exchange Commission'vs. Performance Foreigin Exchange Corporation, GR No 154131, July 20. 2006. 55 Annexes "-I" to "I-16": "S" to "-50" of the Motion. Attachments of Annexes " "K": ": M"; "N"; "O": "P": "Q"; and "R" of the Motion.. 56 (bid

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in the Commission, PALAWAN ENTRE-BUSINESS COMPANY, its partners, WHEREFORE,premises considered and pursuant to the authority vested

officers, agents, representatives, conduits, assigns, and any and all persons claiming and acting for and in behalf and under their authority are hereby ordered to IMMEDIATELY CEASE AND DESIST58, UNDER PAIN OF CONTEMPT from engaging in activities of selling and/or offering for sale securities in the form of investment contracts or any others of the same nature until the requisite registration statement is duly filed with and approved by the Commission and the corresponding to offer/sell is issued.

Furthermore, the subject partnership is directed to cease its internet presence relating to above-stated investment activities. The Commission will institute the appropriate administrative and criminal action against any persons or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or the like for and in behalf of the subject corporations.

Counsel or any of its authorized representatives, if any; and 2) post copies of the Order at the entrance of the main office and/or branches, if any, of PALAWAN BUSINESS COMPANY, its Partners, General Manager, Treasurer,In-House The EIPD is hereby DIRECTED to: 1) serve this Order PALAWAN ENTRE

ENTRE-BUSINESS COMPANY.

Commission's departments for their information and appropriate action. published in a national newspaper of general circulation; 3.) furnished to all the Let a copy of this Order be: 1.) posted in the Commission's website; 2.

receipt of this Cease and Desist Order. Way of a pleading, to the Commission En Banc WITHIN FIVE (5) DAYS from EIPD is FURTHER DIRECTED to submit a formal compliance report, by

the 2006 Rules of Procedure of the Commission, the parties subject of this Cease and Desist Order may file a request for the lifting thereof within five (5) days In accordance with the provisions of Sec. 64.359 of SRC and Sec. 10-3 of

from receipt hereof.

58 Section 6. SRC. The Commsion, after proper investigation or verficatiog moru proio or uponverifed complaint by the hearing. If the Commission fails to resolve the request within the time herein prescribed, the cease and desist order shall any aggrieved party, may issue a cease and desist order without the necessity of a prior hearing if in its judgment the act or Prejudice to the investing public. fifteen (15) days from its filing and the resolution thereof shall be made not later than ten (10) days from the termination of automatically be lifted the practice. SRC, Section 64.3. Any person against whom a cease and desist order was ssued may. within five (5) days from receipt of unless restrainedwill operate as fraud on investors or is otherwise likely to cause grave ar irreparable injury or file a formal request for a lifting thereof. Said request shall be set for hearing by the Commission not later than

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The dispositive portion reads:

ENTRE-BUSINESS COMPANY, its partners, officers, agents, representatives, conduits, assigns, and any and all persons claiming and acting for and in behalf and under their authority are hereby ordered to IMMEDIATELY CEASE AND DESIST, UNDER PAIN OF CONTEMPT, from engaging in activities of selling and/or offering for sale securities in the form approved by the Commission and the corresponding to offer/sell is issued. of investment contracts or any others of the same nature until the requisite registration statement is duly filed with and "WHEREFORE, premises considered and pursuant to the authority vested in the Commission, PALAWAN

investment activities. The Commission will institute the appropriate administrative and criminal action against any persons or entities found to act as solicitors, information providers, salesmen, agents, brokers, dealers or the like for and in behalf of the subject corporations. Furthermore, the subject partnership is directed to cease its internet presence relating to above-stated

General Manager, Treasurer, In-House Counsel or any of its authorized representatives, if any; and 2) post copies of the Order at the entrance of the main office and/or branches, if any, of PALAWAN ENTRE-BUSINESS COMPANY. The EIPD is hereby DIRECTED to: 1) serve this Order to PALAWAN ENTRE-BUSINESS COMPANY, its Partners,

general circulation; 3.) furnished to all the Commission's departments for their information and appropriate action. Let a copy of this Order be: 1.) posted in the Commission's website; 2.) published in a national newspaper of

En Banc WITHIN FIVE (5) DAYS from receipt of this Cease and Desist Order. EIPD is FURTHER DIRECTED to submit a formal compliance report, by way of a pleading, to the Commission

Commission, the parties subject of this Cease and Desist Order may file a request for the lifting thereof within five (5) days from receipt hereof." In accordance with the provisions of Sec. 64.3 of SRC and Sec. 10-3 of the 2006 Rules of Procedure of the

FAIL NOT UNDER PENALTY OF LAW

SO ORDERED.

Pasay City, Philippines; 26 January 2017

TERESITA J. HERBOSA Chairperson

F.IBE EPHYRO LUIS B. AMATONG mmissionei Commissioner

3 AME EMILIO Y C

ICommissioner Commis one