HECTOR PANTOLLANA, ZUES LIAO, PANTOLLANA, REYMOND LACSAMANA GALANG, QUARRY QUIENG AND ERWIN I. BANGALAN ET. AI.

Securities and Exchange Commission Republic of the Philippines Department of Finance

COMMISSION EN BANC

In the Matter of:

HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND LACSAMANA GALANG, QUARRY

ET. AL., QUIENG AND ERWIN L. BANGALAN Respondents,

SEC CD0 Case No. 02-23-098 Promulgated: 16 March 2023

(EIPD) ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT Movant.

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CEASE AND DESIST ORDER

Desist Order (the "Petition") dated 21 February 2023 filed by the Enforcement and Investor Protection Department (EIPD) on 20 February QUIENG, ERWIN "WENG" L. BANGALAN, KIM MEJICA, DANIEL RENTA,MARICEL RAPOSON CESUMISION, AVEGAIL NAMOC CRUZ, CECILIA TABANO VIZCAYANO, STEPHEN CECILIA A. DOROG, ZEN CARREON HUMILDE, HEIN CARREON HUMILDE, RAFFY PALANGDAN FLORESCA, JENNILYN GALLETES DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG, MIKHAELLA DAMASCO TY,"ARIEL"RAMOS 2023, praying that a Cease and Desist Order be issued directing ESPORTS LEAGUE, TEAM Z, HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND "MONSKI" LACSAMANA GALANG, QUARRY AGBISIT, JAMES CHRISTOPHER TAN ROJAS, JOSEPH JUNIA ZABALA, MARIA Respondents HORIZON PLAYERS CLUB, PHILIPPINE NATIONAL QUINZON, RONALDO Before this Commission is the Petition for Issuance of a Cease and PAUL TOLENTINO MARANAN, VANESSA MENDOZA MAGBOO, GUMBA MARTINADA, EMBING RENTA, NESHEMAH JM ALMODIENTE, ROCK S LORICO (O C

THE DOCUMENTS ON RECORD CERTIFIED TRUE COPY OF

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In the matter of

REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CDO Case No.02-23-098 Cease and Desist Ordei Page 2 of 16

directors, officers, representatives, salesmen, agents, enablers, influencers and any and all persons, conduit entities and subsidiaries claiming and acting for and in their behalf (the "Agents"), to immediately cease and desist from further engaging in the sale/offer of securities in the form of investment contracts for want of the requisite registration statement, and the permits to offer/sell securities. KATIGBAK, and DEN ABAD (the "Respondents"), and their operators,

prohibited from transacting any and all business involving the funds in their respective depository banks, and from transferring, disposing, or The EIPD also prays that Respondents and their Agents be

conveying in any other manner, any and all assets, properties, real or personal, including bank deposits, if any, of which the named persons herein may have any interest, claim or participation whatsoever, whether

authority from the Commission.1 directly or indirectly, under their custody, without the prior written

PARTIES

Movant, EIPD is one of the Commission's operating departments tasked, among others, to investigate motu proprio or upon complaint or referral, violations of laws, rules, and regulations administered, implemented, or issued by the Commission, and to seek the issuance of a Cease and Desist Order (CDO) whenever warranted by the circumstance.2

Respondent HORIZON PLAYERS CLUB (HPC) is an entity that is not registered with the Commission either as a corporation or as a partnership.

Respondent PHILIPPINE NATIONAL ESPORTS LEAGUE (PNEL) is an entity that is not registered with the Commission either as a corporation or as a partnership.

Commission either as a corporation or as a partnership. Respondent TEAM Z is an entity that is not registered with the

Street, Camella SPV, Molino III, Bacoor, Cavite City. Filipino citizen, and a resident of Block 5, Lot 8c, Phase I, West Siniguelas Respondent HECTOR ALDWIN LIAO PANTOLLANA is of legal age,

1 Motion for Issuance of Cease and Desist Order dated 21 February 2023. 2 SEC Office Order No. 512, series of 2013. THEDOCUMENTSONREXSRE CERTHHEU THUE COY3E S (Y

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CDO Case No.02-23-098 Cease and Desist Order In the matter of Page 3 of 16

Respondent ZEUS LIAO PANTOLLANA is of legal age, Filipino

Camella SPV, Molino III, Bacoor, Cavite City. citizen, and a resident of Block 5, Lot 8c, Phase I, West Siniguelas Street,

Respondent REYMOND"MONSKI"LACSAMANA GALANG is of legal

Building, 1100 Madrigal Business Park Zapote, Alabang, Muntinlupa age, Filipino citizen, and with office address at 6th floor, Frabelle Alabang

Respondent REYMOND"MONSKI"LACSAMANA GALANG is of legal age, Filipino citizen, and with office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal Business Park Zapote, Alabang, Muntinlupa

Respondent QUARRY QUIENG is of legal age, Filipino citizen, and with office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal Business Park Zapote, Alabang, Muntinlupa.

1100 Madrigal Business Park Zapote, Alabang, Muntinlupa. citizen, and with office address at 6th floor, Frabelle Alabang Building, Respondent ERWIN "WENG" L. BANGALAN is of legal age, Filipino

Respondent KIM MEJICA, is of legal age, Filipino citizen, and with

Business Park Zapote, Alabang, Muntinlupa. office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal

with office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal Business Park Zapote, Alabang, Muntinlupa. Respondent DANIEL AGBISIT, is of legal age, Filipino citizen, and

Respondent PAUL TOLENTINO MARANAN, is of legal age, Filipino

1100 Madrigal Business Park Zapote, Alabang, Muntinlupa. citizen, and with office address at 6th floor, Frabelle Alabang Building.

Respondent JM ALMODIENTE, is of legal age, Filipino citizen, and

Business Park Zapote, Alabang, Muntinlupa. with office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal

office address at 6th floor, Frabelle Alabang Building, 1100 Madrigal Business Park Zapote, Alabang, Muntinlupa. Respondent CJ QUINZON, is of legal age, Filipino citizen, and with

Building, Fil-Am Friendship Highway, Angeles, Pampanga. citizen, and with office address at House For Less, Unit C, Henson Respondent VANESSA MENDOZA MAGBOO, is of legal age,Filipino

a resident of Block 4, Lot II, Canacao Homes 2, Fraternidad San Juan-H Respondent GUMBA MARTINADA, of legal age, Filipino citizen, and

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWINL.BANGALAN ET AI SEC CDO Case No.02-23-098 Cease and Desist Order In the matter of Page 4 of 16

Noveleta Cavite and with office address at Unit 12, 2nd Floor, Heritage Building, Mangubat Avenue Zone IV (Poblacion) Dasmarinas City, Cavite.

Floor Heritage Building, Mangubat Avenue Zone IV (Poblacion) Paliparan, Dasmarinas City, Cavite and Office address at Unit 12, 2nd Dasmarinas City, Cavite. citizen, and a resident of Block 2, Lot 15, La Meseta, Island Park, Respondent RONALDO EMBING RENTA, of legal age, Filipino

Filipino citizen, and a resident of Block 2, Lot 15, La Meseta, Island Park, Respondent NESHEMAH ROCK LORICO RENTA, of legal age,

Paliparan, Dasmarinas City, Cavite and Office address at Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Zone IV (Poblacion) Dasmarinas City, Cavite.

Respondent MARICEL RAPOSON CESUMISION, of legal age,Filipino citizen, and a resident of Block 51, Lot 3, Phase 2, Windward Hills

Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Zone IV Subdivision, Burol I, Dasmarinas City, Cavite, and with office address at (Poblacion) Dasmarinas City, Cavite.

Respondent AVEGAIL NAMOC CRUZ, of legal age, Filipino citizen

IV (Poblacion) Dasmarinas City, Cavite. and a resident of 6 Mabini Barihan, Malolos City, Bulacan, and with office address at Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Zone

Zone IV (Poblacion) Dasmarinas City, Cavite. citizen, and a resident of Middle Quarry Subdivision (% Office of the Punong Barangay of Middle Quarry Barangay), Baguio City and with office address at Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Respondent JAMES CHRISTOPHER TAN ROJAS,of legal age, Filipino

resident of 14 Karla Ville Subdivision, Wawa II, Rosario, Cavite and with office address at Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Respondent JOSEPH JUNIA ZABALA, of legal age, Filipino citizen, a

Zone IV (Poblacion) Dasmarinas City, Cavite.

2nd Floor Heritage Building, Mangubat Avenue Zone IV (Poblacion) Subdivision, Burol I, Dasmarinas City, and with office address at Unit 12. Dasmarinas City, Cavite. Filipino citizen, a resident of Block 26, Lot 9, Phase I, Windward Hills, Respondent MARIA CECILIA TABANO VIZCAYANO, of legal age

citizen, a resident of 245 Villa Del Rio I Subdivision, Alcazar, Cebu City, Respondent STEPHEN CECILIA A. DOROG, of legal age, Filipino

CERTIFIEDTRUFCOPYO THHE DOCUMENTS ON RECORE

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L.BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of: Page 5 of 16

and with office address at Unit 12, 2nd Floor Heritage Building, Mangubat Avenue Zone IV (Poblacion) Dasmarinas City, Cavite.

Respondent ZEN CARREON HUMILDE, of legal age, Filipino citizen,

Highway corner CM Recto, Clark Freeport, Mabalacat, Pampanga. and with office address at Horizon Players Club, Hann Casino, Ma Roxas

Respondent HEIN CARREON HUMILDE, of legal age, Filipino citizen, and with office address at Horizon Players Club, Hann Casino, Ma Roxas Highway corner CM Recto, Clark Freeport, Mabalacat, Pampanga

Respondent RAFFY PALANGDAN FLORESCA of legal age,Filipino citizen, married to JENNIFER DELOS SANTOS, and with office address at

Mitra Barangay, Baguio City. Casa Infini, Ground Floor, Megatower Residences, Sandico Street, Salud

Respondent JENNILYN GALLETES DELOS SANTOS FLORESCA, of legal age, Filipino citizen, married to RAFFY PALANGDAN FLORESCA, and Sandico Street, Salud Mitra Barangay, Baguio City. with office address at Casa Infini, Ground Floor, Megatower Residences,

Respondent RHODA ANDRADA CASUGA, of legal age, Filipino

Roxas Highway corner CM Recto, Clark Freeport, Mabalacat, Pampanga. citizen, and with office address at Horizon Players Club, Hann Casino, Ma

Respondent MIKHAELLA DAMASCO TY of legal age, Filipino citizen

Highway corner CM Recto, Clark Freeport, Mabalacat, Pampanga. and with office address at Horizon Players Club, Hann Casino, Ma Roxas

and a resident of 40 Gabriela Street, Camdas Subdivision, Baguio City. Respondent ARIEL RAMOS KATIGBAK of legal age, Filipino citizen,

address at LA Cusina Den, 55 Legarda Road, Baguio City. Respondent DEN ABAD, of legal age, Filipino citizen, and with office

RELEVANT FACTS

soliciting investments from the public to finance its so-called Casino Tabifranca (the "Complainants"), who alleged that Respondents are filed with the EIPD by Mhay Ann Carriza De Felipe and Kym Lorraine The filing of the Motion was prompted by an Affidavit-Complaint3

Junket Operations, as well as similar or related casino financing activities using different business conduits, namely, PHILIPPINE NATIONAL

3 Motion(n1), Affidavit Complaint attached as Annex "A." ERTIFITDTNUE ii

YUOCUN SNREAR

REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CDO Case No.02-23-098 Cease and Desist Order In the matter of: Page 6 of 16

L, ESPORTS LEAGUE (PNEL), HORIZON PLAYERS CLUB (HPC), and TEAM

them an investment opportunity to fund a casino junket operation which will yield a 10% monthly pay-out, duly supported by post-dated checks and notarized contracts of loan.5 On the basis thereof, as well as on Mr. Pantollana's representation that he has a junket license from PAGCOR, The Complainants alleged that Respondents contacted and offered

and that PNEL has a primary and secondary license from the SEC, Complainant De Felipe initially invested PhP3,000,000.00 which resulted

in the aggregate amount of PhP12,543,000 which were similarly covered by Contracts of Loan and post-dated checks.6 in the execution of a Contract of Loan, and the issuance of a post-dated check in her favor. Complainants thereafter made additional investments

Complainants admitted having received pay-outs. However, by

guaranteed pay-outs. When they confronted the Respondents of their mid-2020, the Respondents allegedly stopped giving them the

concerned casinos, the latter eventually admitted that they were running a Ponzi scheme where the investments of new investors are used to pay outstanding obligation, and threatened to report the matter to the off the earlier/existing investors.7

Respondents, they invested a total amount of around PhP92 Million. The Complainants alleged that due to the misrepresentation of the

complainants alleged that their lawyer eventually found out that HPC and PNEL are not registered with DTI, SEC, and PAGCOR.8

that Respondents are using a scheme of making it appear that they are engaged in a legitimate casino junket operation, carrying out casino financing activities which require funding from the public to carry out the Moreover, the EIPD discovered in the course of its investigation

same and promises investors a guaranteed lucrative return ranging from 60% to 111% per annum.9 Respondents represent to the public that the investments received will be used to finance their business operation consisting of the provision o travel, accommodation, and related services designed to bring i -roller casino players. This generates for them considerable commissions given by the casinos, which is then

4 Ibid, Paragraphs. 33 and 38. 6 Ibid. Pars. 20 to 25 5 Affidavit-Complaint dated 3 October 2022 7 Id. Pars. 35 to 36 8 Id. Annexes B-8 to B-11 9 Petition. Pars. 11 and 12 CERTUFITOTRUECOYO - (

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL. SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of. Page 7 of 16

used to pay the guaranteed returns on the investments of member- investors.10

clarificatory conference, the Complainants submitted on 24 November 2022 the contracts of loan which they entered into with Respondent Mr. In compliance with the directive made by the EIPD during the

PhP114,000,000.00. appears that there were about eighty-five (85) contracts of loan that were executed by Respondent. Mr. Pantollana with around sixty-five (65) Pantollana, and a list of his investors. Based on such submissions, it investors, involving/coveringan aggregate amount of about

already filed criminal cases with the appropriate Regional Trial Courts Acting on the information that a number of the complainants have

Benguet that the Contracts of Loans which were submitted are certified (RTC), the EIPD was able to get confirmation from the RTC - La Trinidad,

copies of the photocopy on file.

the Certifications issued by the Company Registration and Monitoring unauthorized sale/offer of unregistered securities, the EIPD submitted Department (CRMD), the Markets and Securities Regulation Department In support of its allegation that Respondents are engaged in the

(MSRD), and the Corporate Gov nance and Finance Department (CGFD) which showed that PNEL not registered with the

(OPC). and Commission one person corporation Lending Company Bro Government Securitie estment House urities that th of the Serur irities The CRM tollana namel vmond Monski ene Bangalan) h ses as. capital market oliance Officer, Salesr ma Broker Dealer in Securiti ecurities Investment Compani AC ributor and they have no pending applications with the Commission for said Certificate of Registration or License.

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Ordei In the matter of. Page 8 of 16

ISSUE

Whether the allegations in the Petition as substantiated by the evidence presented by the EIPD warrant the issuance of a CDO.

RULING

The Commission finds merit in the Petition and hereby grants the Same.

The EIPD was able to establish by substantial evidence that

license from the Commission. public in the form of "evidences of indebtedness" without the requisite Respondents are offering and/or selling unregistered securities to the

"securities" as follows: Section 3.1 of the Securities Regulation Code (SRC), defines

Sec. 3. Definition of Terms. - 3.1. "Securities" are shares participation or interest in a corporation or in a commercial certificate, contract, instrument, whether enterprise or profit-making venture_and evidenced by a written 01 electronic in character. It includes:

XXX . Shares of stocks, bonds, debentures, notes, evidences

of indebtedness, asset-backed securities;

xxx". (Emphasis supplied)

of covering practically all forms and varieties thereof which are known The SRC has adopted a broad definition of securities with the intent

commercial/financial world. Thus, in the case of Gabionza vs. Court of by those who seek to use the money of others on the promise of profits. or considered, or ought to be known or considered, to be such in the Appealsi1 (the "Gabionza Case"), the Supreme Court ruled that the term capable of adaptation to meet the countless and variable schemes devised "securities" embodies a flexible rather than static principle, one that is

participation, or interests in a corporation or in a commercial This Commission has thus consistently held that all shares.

enterprise or profit-making venture and evidence by a certificate,

11 G. R. No. 161057, 12 September 2008 (

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of: Page 9 of 16

contract, or instrument, whether written or electronic in character within the Philippines are securities or presumed to be securities.

In particular, a certificate or evidences of indebtedness is a written

long-term commercial and short-term commercial papers.12 A certificate representation of debt securities or obligations of corporations such as

of indebtedness pertains to certificates for the creation and maintenance of a permanent improvement revolving fund, similar to a "bond". Being

purpose of long-term loans.13 equivalent to a bond, it is properly understood as an acknowledgment of an obligation to pay a fixed sum of money. It is usually used for the

In the Gabionza Case, the Supreme Court ruled that the checks and loan documents that were issued are evidences of indebtedness because they were issued in lieu of securities which the SRc requires to be registered with the Commission, thus:

"In the instant case, the checks were issued by ASB in lieu of the securities enumerated under the Revised Securities Act in a clever attempt, or so they thought, to take the case out of the purview of the law, which requires prior license to sell or deal in securities and registration thereof. The scheme was designed to circumvent the law. Checks constitute mere substitutes for cash if so issued in payment of obligations the ordinar course. of business transactions. But when they are issued in exchange for a big number of individual non sonal lized loans solicited from the publi numberin about 700 in this case, the checks cease to be su rs hecks assume the chara indebtedness. This is especiall WMA dividu c were not evidenced rM appropriate debt instruments, such as promissory notes, loan agreements, etc. as in this case Purportedly, the postdated checks themselves serve as the evidences of the indebtedness. A different rule would open the floodgates for a similar scheme, whereby companies without prior license or authority from the SEc. This cannot be countenanced." (Emphasis supplied)

In the instant case, Respondents were able to obtain, and are

12 Decasa, Lucia M., Securities Regulations Code Annotated with Implementing Rules-and Regulations; 2004, 1st ed., p.7 13 G.R. No. 93397, Traders Royal Bank vs. Court of Appeals, 3 March 1997 FIItE C

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L.BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Ordel In the matter of: Page 10 of 16

continuously obtaining, funds from the investing public who are enticed to actually invest their hard-earned money on the strength of the promise made by Respondents of a guaranteed high returns, using for this purpose the social media platforms. Moreover, the evidence also shows that Respondents use loan documents and negotiable instruments to provide a semblance of legitimacy to their unauthorized operation as well as the unregistered securities subject thereof.14 Consequently, Respondents were actually able to utilize and get away with more or less

unauthorized investment scheme. PhP114,000,000.00 worth of investors, money to further their

The Commission finds and so holds that the contracts of loan and the post-dated checks are clearly securities in the form of "evidences of indebtedness" contemplated under the SRC, inasmuch as they were number of individual non-personalized loans obtained or solicited from the public. This scheme effectively transformed the nature and executed and issued by Respondents in exchange for a considerably big

characteristic of the checks from a simple negotiable instrument to a security in the form of evidence of indebtedness which, under the SRc. requires prior registration from the Commission before the same can be sold or offered to the public.

be sold or offered for sale or distribution within the Philippines, if the same Section 8.1 of the SRC categorically provides that securities shall not

is not registered with the Commission in the form of an approved Registration Statement and a Permit to Offer/Sell issued in favor of the applicant, to wit:

"SEC. 8 Requirement of Registration of Securities. - 8.1.

distribution within the Philippines, without a Securities shall not be sold or offered for sale or

registration statement duly filed with and approved by

securities, in such form and with such substance as the Commission may prescribe, shall be made available to each prospective purchaser." (Emphasis supplied) the Commission. Prior to such sale, information on the

Supreme Court emphasized that the purpose of the provision of the SRc In the case of Herbosa vs. CJH Development Corporation,15 the

investing in worthless securities. requiring the registration of securities is to afford public protection from

14 Ibid, Check attached as Annex "S-1." 15 G.R. No. 210316, 28 November 2016. THE DOGUMENFS ON RECORD CErTIFIEP t0 OF 1U TRUFCYC O

REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CDO Case No.02-23-098 Cease and Desist Order In the matter of: Page 11 of 16

In the instant case, the Commission particularly notes the

implied admission that the checks and loan documents that they were admission that Respondents made to the Complainants relating to the real nature of their investment scheme, i.e., a ponzi scheme. This is an

fact that was affirmed by the Certifications issued by the CRMD, MSRD, issuing to the public in exchange for cash are unregistered securities; a

and CGDF which attested to the reality that Respondents have no license to deal in securities, and have not registered the securities that they are selling/offering to the public. Respondents are therefore clearly in a state of continued violation of the SRC. This warrants the issuance of a CDO.

Moreover, the act of the Respondents, in publicly offering the unregistered securities through social media platforms as well as through presentations made in VIP rooms of casinos and golf tournaments, constitutes a public offering of securities as defined in Rule 3.1.17 of the 2015 Implementing Rules and Regulation of the SRC (2015 SRC Rules), thus:

"Public offering is any offering of securities to the public or to anyone, whether solicited or unsolicited. Any solicitation or presentation of securities for sale through any of the following modes shall be presumed to be a public offering:

commercial place; 3.1.17.2. Presentation in any public or xxx." (Emphasis supplied)

Considering that Respondents have not been issued a license to

evidences of indebtedness constitutes a clear violation of the afore- offer securities, their act of actually offering securities in the form of

quoted provision of the Rules.

Relative to the prayer of the EIPD for issuance of a CDO, Section 64.1 of the SRC provides that the Commission may issue a CD0 without the necessity of conducting a hearing if, to its mind, the act or practice will operate as a fraud on investors or is otherwise likely to cause grave or irreparable injury or prejudice to the investing public, thus:

"Section 64. Cease and Desist Order.- 64.1. The Commission, after proper investigation verification, motu proprio or upon verified complaint'by eOYo

HEO RECORT PAG

REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L.BANGALAN ET AL SEC CDO Case No.02-23-098 Cease and Desist Order In the matter of: Page 12 of 16

any aggrieved party, may issue a cease and desist order without the necessity of a prior hearing if in its

to cause grave or irreparable injury or prejudice to operate as a fraud on investors or is otherwise likely the investing public." (Emphasis supplied) judgment the act or practice, unless restrained, will

Under the afore-quoted provision, there are two (2) essential requisites that must be complied with for a valid issuance of a CDO:

1) There must be a conduct of a proper investigation or 2) There is a finding that the act or practice, unless restrained, verification; and

will operate as a fraud on investors or is otherwise likely to

public.16 cause grave or irreparable injury or prejudice to the investing

conducted an independent investigation which resulted in the gathering Certifications from the Commission's CRMD, MSRD, and CGFD; the and presentation of evidence that supported its Petition, i.e., In the instant case, the foregoing requisites were met. The EIPD

Contracts of Loan which were duly certified by the RTC of La Trinidad, Benguet, and the affidavits of the complainants. More importantly, this Commission is convinced that evidence on record which showed the unauthorized investment-taking activities of the Respondents warrant

investors or is likely to cause grave or irreparable injury or prejudice to the issuance of a CDo because the same will operate as a fraud on the investing public, if not restrained. This finding is supported by the fact

affirmed by the Certifications of the CRMD, MSRD, and CGFD. that Respondents admitted to carrying out a ponzi scheme which was

by the records that the Respondents' act of selling/offering unregistered This finds support in the case of Securities and Exchange Commission vs. that: securities in the form of evidence of indebtedness constitutes fraud which should be promptly restrained for the protection of the investing public. CJH Development Corp.17 where the Supreme Court categorically held Moreover, this Commission cannot overemphasize the fact borne

17 G.R. No. 210316, November 28, 2016. 16 Securities and Exchange Commission vs. Performance Foreign Exchange Corporation (G.R. No. 154131, July 20, 2006 THE DOCUMENIS ONRECORD CERTHED TRUF COYYO {

REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA. ERWIN L. BANGALAN ET AL. SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of: Page 13 of 16

"The law is clear on the point that a cease and desist order may be issued by the SEc motu proprio, it being unnecessary that it results from a verified complaint from an

yield such results can only generate further injury to the aggrieved party. A prior hearing is also not required cease and desist order that aims to curtail fraud or grave public that the SEC is obliged to protect." whenever the Commission finds it appropriate to issue a for this provision, as any delay in the restraint of acts that or irreparable injury to investors. There is good reason

by making it appear that respondents have the authority to deal operate as a fraud on investors as it deceives the investing public The act of selling unregistered securities would necessarily

with such securities. Section 8.1 of the SRC clearly states "that

securities, in such form and with such substance as the SEc may Philippines without a registration statement duly filed with and approved by the SEC and that prior to such sale, information on the prescribe, shall be made available to each prospective buyer." (Emphasis securities shall not be sold or offered for sale or distribution within the

supplied)

PLAYERS CLUB, PHILIPPINE NATIONAL ESPORTS LEAGUE, TEAM Z) "MONSKI" LACSAMANA GALANG, QUARRY QUIENG, ERWIN "WENG" HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND WHEREFORE, premises considered, Respondents HORIZON

MARANAN, JM ALMODIENTE, CJ QUINZON, VANESSA MENDOZA L. BANGALAN, KIM MEJICA, DANIEL AGBISIT, PAUL TOLENTINO MAGBOO, GUMBA MARTINADA, RONALDO EMBING RENTA, NESHEMAH ROCK LORICO RENTA,MARICEL RAPOSON CESUMISION, JUNIA ZABALA, MARIA CECILIA TABANO VIZCAYANO, STEPHEN CECILIA A. DOROG, ZEN CARREON HUMILDE, HEIN CARREON AVEGAIL NAMOC CRUZ, JAMES CHRISTOPHER TAN ROJAS, JOSEPH

further engaging in, promoting and facilitating selling and/or offering representatives, salesmen, solicitors, agents, uplines, enablers and influencers, and any and all persons claiming and acting for and in their for sale securities in the form of evidence of indebtedness and/or other DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG, MIKHAELLA DAMASCO TY, behalf, are hereby directed to IMMEDIATELY CEASE AND DESIST from HUMILDE, RAFFY PALANGDAN FLORESCA, JENNILYN GALLETES ARIEL RAMOS KATIGBAK, and DEN ABAD,

statements are duly filed with and approved by the Commission, and the activities/transactions relative thereto, until the requisite registration corresponding license and/or permit to offer/sell securities are issued.

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L.BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of: Page 14 of 16

PANTOLLANA, QUARRY QUIENG, ERWIN "WENG" L. BANGALAN, KIM MEJICA, DANIEL AGBISIT, PAUL TOLENTINO MARANAN, JM ALMODIENTE CJ QUINZON, VANESSA MENDOZA MAGBOO, GUMBA MARTINADA, RONALDO EMBING RENTA, NESHEMAH ROCK LORICO RENTA, MARICEL RAPOSON CESUMISION, AVEGAIL NAMOC CRUZ, JAMES ESPORTS LEAGUE, TEAM Z, HECTOR PANTOLLANA, ZEUS LIAO Respondents HORIZON PLAYERS CLUB,PHILIPPINE NATIONAL REYMOND "MONSKI" LACSAMANA GALANG,

FLORESCA, JENNILYN GALLETES DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG, MIKHAELLA DAMASCO TY, ARIEL RAMOS KATIGBAK, and DEN ABAD, representatives, salesmen, CHRISTOPHER TAN ROJAS, JOSEPH JUNIA ZABALA, MARIA CECILIA TABANO VIZCAYANO, STEPHEN CECILIA A. DOROG, ZEN CARREON HUMILDE. HEIN CARREONHUMILDE, RAFFY PALANGDAN solicitors,

the appropriate administrative and criminal action against any persons or entities found to act as solicitors, information providers, salesmen, claiming and acting for and in their behalf, are likewise directed to covered by this Cease and Desist Order. The Commission will institute agents, brokers, dealers, or the like for and on their behalf. agents, uplines, enablers and influencers, and any and all persons CEASE their transactions relative to the Casino Junket Operation

MENDOZA MAGBOO, GUMBA MARTINADA, RONALDO EMBING RENTA, NESHEMAH ROCK LORICO RENTA,MARICEL RAPOSON CESUMISION, AVEGAIL NAMOC CRUZ, JAMES CHRISTOPHER TAN ROJAS, LEAGUE, TEAM Z, HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND "MONSKI" LACSAMANA GALANG, QUARRY QUIENG, TOLENTINO MARANAN, JM ALMODIENTE, CJ QUINZON, VANESSA HORIZON PLAYERS CLUB, PHILIPPINE NATIONAL ESPORTS ERWIN "WENG" L. BANGALAN, KIM MEJICA, DANIEL AGBISIT, PAUL Finally, the Commission hereby PROHIBITS Respondents JOSEPH JUNIA ZABALA, MARIA CECILIA TABANO VIZCAYANO, STEPHEN CECILIA A. DOROG, ZEN CARREON HUMILDE, HEIN CARREON HUMILDE, RAFFY PALANGDAN FLORESCA,

deposits, of which the named persons herein may have any interest,. subsidiaries claiming and acting for and on its behalf from transacting any business involving the funds covered by this CDO in its depository banks, and from transferring, disposing, or conveying in any manner, all JENNILYN GALLETES DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG,MIKHAELLA DAMASCO TY, ARIEL RAMOS KATIGBAK, and DEN ABAD, its partners, operators, directors, officers, salesmen agents, representatives, promoters, and all persons, conduit entities and assets, properties, real or personal, including but not limited. to bank

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of. Page 15 of 16

claim or participation whatsoever, directly or indirectly, under its/their custody, to ensure the preservation of the assets for the benefit of the investors.

copy of this CDO to Respondents HORIZON PLAYERS CLUB, PHILIPPINE NATIONAL ESPORTS LEAGUE, TEAM Z, HECTOR The EIPD of the Commission is hereby DIRECTED to (a) serve a

PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND "MONSKI" LACSAMANAGALANG, QUARRY QUIENG, ERWIN"WENG" L BANGALAN, KIM MEJICA, DANIEL AGBISIT, PAUL TOLENTINO MARANAN, JM ALMODIENTE, CJ QUINZON, VANESSA MENDOZA MAGBOO, NESHEMAH ROCK LORICO RENTA, MARICEL RAPOSON CESUMISION, AVEGAIL NAMOC CRUZ, JAMES CHRISTOPHER TAN ROJAS, JOSEPH JUNIA ZABALA, MARIA CECILIA TABANO VIZCAYANO, STEPHEN GUMBA MARTINADA, RONALDO EMBING RENTA,

CECILIA A. DOROG, ZEN CARREON HUMILDE, HEIN CARREON

DAMASCO TY, ARIEL RAMOS KATIGBAK,and DEN ABAD and (b) cause the posting of this Order in the Commission's website. DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG, MIKHAELLA HUMILDE, RAFFY PALANGDAN FLORESCA, JENNILYN GALLETES

BANGALAN, KIM MEJICA, DANIEL AGBISIT, PAUL TOLENTINO PANTOLLANA, ZEUS LIAO PANTOLLANA, REYMOND "MONSKI" MARANAN, JM ALMODIENTE, CJ QUINZON, VANESSA MENDOZA criminal proceedings against Respondents HORIZON PLAYERS CLUB, LACSAMANAGALANG, PHILIPPINE NATIONAL ESPORTS LEAGUE, TEAM Z, HECTOR MAGBOO, The EIPD is FURTHER DIRECTED to (a) initiate the appropriate GUMBA MARTINADA,RONALDOEMBING QUARRY QUIENG, ERWIN "WENG" L. RENTA, NESHEMAH ROCK LORICO RENTA, MARICEL RAPOSON CESUMISION AVEGAIL NAMOC CRUZ, JAMES CHRISTOPHER TAN ROJAS, JOSEPH JUNIA ZABALA, MARIA CECILIA TABANO VIZCAYANO, STEPHEN CECILIA A. DOROG, ZEN CARREON HUMILDE, HEIN CARREON HUMILDE, RAFFY PALANGDAN FLORESCA, JENNILYN GALLETES

submit a formal compliance report, by way of pleading, to the Desist Order. Commission En Banc within ten (10) days from receipt of this Cease and DELOS SANTOS FLORESCA, RHODA ANDRADA CASUG, MIKHAELLA DAMASCO TY, ARIEL RAMOS KATIGBAK, and DEN ABAD,and (b)

OY

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REYMOND LACSAMANA GALANG, QUARRY QUIENG AND HECTOR PANTOLLANA, ZEUS LIAO PANTOLLANA, ERWIN L. BANGALAN ET AL SEC CD0 Case No.02-23-098 Cease and Desist Order In the matter of: Page 16 of 16

Let a copy of this Order be furnished to all relevant operating departments/offices of the Commission, the Bangko Sentral ng Pilipinas, the Department of Trade and Industry, the National Privacy Commission, and the Department of Information and Communications Technology for their information and appropriate action.

In accordance with the provisions of Section 64.3 of the SRC and Section 4-3 of the 2016 Rules of Procedure of the Commission, the parties subject of this CDO may file a verified motion to lift.the CDO within five (5) days from receipt thereof. The Motion to Lift the CDO General Counsel. must be filed to the Commission En Banc through the Office of the

FAIL NOT UNDER PENALTY OF LAW.

SO ORDERED.

Makati City, Philippines

EMILIO AQUINO

Chairp ferson

JAVES PAUL D. FRANCISCO KELT NA ZLEE

* Commissioner Commissioner

KARLO(S BELLO Commissioner W MCJILL BRYANT T. FERNANDEZ Commissioner

S R

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