Caceres Lending Investor Co., Global Money Unlimited, ECC-Livelihood Social Services, Inc.

SEC Building, EDSA, Greenhills, Mandaluyong City Securities and Exchange Commission Republic of the Philippines Department of Finance In the Matter of: CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED. ECC-LIVELIHOOD SOCIAL SERVICES, INC. SEC-CDO Case No. 04-12-003 DEPARTMENT ENFORCEMENT AND PROSECUTION Petitioner ORDER Department (EPD) of this Commission against CACERES LENDING INVESTOR CO. and Desist Order (CDO) dated 10 April 2012 by the Enforcement and Prosecution GLOBAL MONEY UNLIMITED and ECC-LIVELIHOOD SOCIAL SERVICES, INC. Pending consideration by the Commission is a Motion for Issuance of a. Cease Article IV of its Articles of Partnership.3 Thus, its registration had expired on 14 June with the SEC on 14 June 19991 under SEC Registration No. A199909295. The names and addresses of CACERES' partners are listed under Article III of its Articles of Partnership.2 The term of existence of CACERES is ten (10) years as provided under 1999.4 CACERES LENDING INVESTOR CO. (CACERES) is a partnership registered Commission a primary license to operate as a partnership for the following purpose: Based on Article V of its Articles of Partnership, CACERES was granted by the "To engage in a business of tending investors lending money to person and entities under terms and.conditions allowed by law provided that the company 1 Motion For Issuance of Cease and Desist Order, Annex "B". Platero, Binan, Laguna; Redante M. Barredo, Chrisantenum St., Sta. Rosa, Subd. Tagap, Sta. Rosa, Laguna; and Roberto A. Caparas, 435 Barangay Bigaa, Cabuyao, Laguna. 2 The names and addresses of the partners are as follows: Edmundo C. Caceres Jr., 95 Mercado St., 3 d. Id., Annex "A". SERVICES, INC. ECC-LIVELIHOOD SOCIAL SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ENFORCEMENT AND PROSECUTION DEPARTMENT Page 2 of 14 shall not engage in financing activities under R.A. 5980 and pawnbrokering under P.D. 114."5 the Lending Company Regulation Act of 2007 (R.A. No. 9474).6 Operate a Lending Company (CA) as required by R.A. 9474, An Act Governing: The Certificate to the effect that CACERES has not been issued a Certificate of Authority to Establishment, Operation And Regulation Of Lending Companies, otherwise known as The Corporation Finance Department (CFD), upon request of the EPD, issued a Registration and Monitoring Department (CRMD), GLOBAL MONEY's name reservation Commission but has applied for name reservation. As certified by the Company had expired on 2 March 2012.7 GLOBAL MONEY UNLIMITED (GLOBAL MONEY) is not registered with the incorporators: and first Trustees are provided under the Article V of its Articles of corporation duly registered with. the Commission on 16 March 2012 with Company Incorporation.9 Registration No. CN201205430.8 ECC-LIVELIHOOD SOCIAL SERVICES, INC. (ECC) is a non-stock, non-profit The names, addresses and nationalities of its are: The purposes of ECC as stated under Article II of its Articles of Incorporation services, enterprise, loan and insurance privilege. the association by assisting them in the establishment of livelihood: facilities, "To promote .camaraderie and uplift the living conditions of every members of livelihood activities and thereby improve the living condition in the community. To encourage the members in the effective utilization of local resources in the I Id., par. 5, p. 2. 3 Id., Annex "F". Romero, Celso O. Cabrera and Monaliza C. Brendia. All the incorporators reside at 2nd.Level Margarita 5 Id., Annex "B". Id., Annex."E.". 9 The names of the incorporators. are as follows: Edmundo C. Caceres Jr., Marlon C. Caceres, Celia E. Commercial Center, Dita, City of Sta. Rosa, Laguna. and are all Filipino. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SERVICES, INC. SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. ENFORCEMENT AND PROSECUTION Page 3 of 14 DEPARTMENT To develop and harness the people's participation in every economic activity toward the development of the community through self-help and self reliance: cultural and moral well being. To. develop cooperation, assistance, harmony.and understanding, among the members to advance.their economic and social status, as well as spiritual, appropriate for the accomplishment of the foregoing purposes To do and perform all other acts and deed as maybe necessary, convenient and Conveyed to EPD reports that such activities drew massive interest from the public.i2 J. Herbosa was sent by a concerned' citizen named Edwin. In the said ietter, the and"GLOBAL MONEY.i1" Subsequently, some officers from: the SEC Extension Offices Chairperson was informed of the lending and investment-taking activities of CACERES EPD. claims that on 1 February 2012, a letter addressed to Chairperson Teresita which reads: On 8 March 2012, the EPD posted an Advisory on the website of the Commission March 6, 2012 ADVISORY NOT ALLOWED to engage in the business of lending anywhere in the Philippines. to R.A. 9474 or the Lending Company Regulation Act of 2007 and is therefore, partnership, has already expired in 2009. Moreover, it has NOT been issued a LENDING INVESTOR COMPANY with SEC Registration No. A199909295, as a Certificate of Authority (CA) to Operate as a Lending Company pursuant The Commission. advises the public that the registration of: CACERES Of GLOBAL MONEYUNLIMITED INC. and. CACERES : GLOBAL FOUNDATION INC. as corporations.or partnerships. Furthermore, the records of the Commission do not show the registration transactions with the above-named entities. The public is advised to not. to enter into any lending or other 12 id., page 4, par. 14. 10 1d Yy 1 Motion For Issuance of Cease and Desist Order, par. 13, p. 4. GLOBAL MONEY UNLIMITED, SERVICES, INC. ECC-LIVELIHOOD SOCIAL SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. ENFORCEMENT AND PROSECUTION Page 4 of 14 DEPARTMENT Division) or send an email to ced@sec.gov,ph. cail the Enforcement and Prosecution Department at telephone numbers 584- 6337. (Office of the Director) and 584-7652 (Complaints and Investigation other activities of CACERES LENDING INVESTOR COMPANY, GLOBAL MONEY UNLIMITED and CACERES GLOBAL FOUNDATION, INC.y pIeaSe If anyone has any information relative to the unauthorized lending or Advisory.i.Some informants/complainants provided details of the entities' operation, as follows:15 the EPD with inquiries as to the status of registration and the authenticity of the SEC In reaction to the Advisory, members/investors and prospective recruits flooded "a. That free business seminars are conducted in the main office;: in branch CACERES/GLOBAL MONEY; offices and in any other place as requested in order to attract members to b.That membership fee to the scheme is P1,000.00; c. That each. member is required to recruit 2 down-lines, member A and member B; d. That the Php 2;000.00 paid by members A and B is divided into four to CACERES. 16 segments, segments A1 and A2 and segments B1 and B2, each segment broken down as follows: Php 100.00 for payment of insurance premium, representing Php 500.00 of the membership fees paid. Allocation of the fees segment to CACERES (for operational expenses and insurance premiums) likewise Php 100.00 for operational expenses and the remaining Php 300.00 collected is as follows: A1 to CACERES, A2 to the business owner-up-line, B1 and B2 to the direct recruiter. B1, which should go to CACERES, is further 'e. That the unlimited income of CACERES shall come from all the A1 and B1 segments of all membership fees paid; 14 id, page 4, par. 17. 13 id, page 4, par. 16. '5 Id, Annexes "J", "J1", "'2", "J3", "J4" and "J5". 16 id, Annex "" ECC-LIVELIHOOD SOCIAL SERVICES, INC. SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ENFORCEMENT AND PROSECUTION DEPARTMENT Page 5 of 14 f. That insurance coverage begins after 6 months and 1 day of membership; g. That the amount of interest-free loan available to each member escalates as one's network widens at the bottom; h. That members are encouraged to recruit family members as their first down lines and were promised additional bonuses by bringing more people to the business seminars." Plan of CACERES and GLOBAL MONEY.17 Under oath, he explained the modus operandi before the investigating team and explained the major components of the Marketing of earning unlimited income under the scheme, stating among others that: On 9 and 12 March 2012, Edmundo Caceres Jr., on his own volition, appeared "a. CACERES has Php 18 million capital fund for interest-free lending activities; b: Part of. the capital fund was derived from the regular lending operation of CACERES since it started interest-free lending in 2009. c. Reguiar public' seminars are conducted to entice people to participate in the scheme. . Flyers and brochures containing the details of the scheme are also distributed during these seminars. d. Updates on CACERES/GLOBAL MONEY are posted on the company website http://www.globalmoneyws.com/. e. The CACERES marketing plan promises unlimited income through recruitment of 2 down-lines at a time. f. The investments of Php 1,000.00 paid by each of 2 the new recruits insurance premiums.18 are to be DIVIDED between 1) CACERES, 2) the direct recruiter, 3) the business center owner and 4) the .operational expenses and 17 id, page 5, par. 18. 18 Id, Annex "K" SERVICES, INC. CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SEC-CDO Case No. 04-12-003 ENFORCEMENT AND PROSECUTION DEPARTMENT Page 6 of 14 g. Recruitment of 2 down-lines entitles the member to Php 5,000.00 interest granted without conditions, collateral, co-maker nor credit investigation. free loan. The loanable amount increases as the recruitment base of the member widens at the bottom. Additionally, the loans' are supposed to be h. Members are also promised the following benefits: iv. Free Insurance on unprovoked murder and assault (Php 25,000.00) i.Free Insurance on Accidental Death/Disability (Php 100,000.00) ji. . Free Total and Permanent Disability Pay (Php 100,000.00) ii.Burial Assistance due to Accidental Death (Php 10,000.00) V Monthly cash allowance (Php 2000.00 x 12 months) vii. Death benefit from compulsory donation of Php 50.00 from all members vi. Monthty Hospitalization: Allowance (Php 500.00-2500.00) nationwide." (emphasis ours) branch office of CACERES.19. From the surveillance, it was learned that an individual Manager Edwin Pulido, offers the following returns: may also invest in the Php 500,000.00 investment plan. This plan, according to Branch On 15 March 2012, assigned investigators conducted surveillance in the Cubao a. The right to operate a Caceres branch office as a "business center owner", rental, utilities and maintenance charged to the account of CACERES; b.. Php 500.00 of membership fees paid by every two .recruits of branch down- Iines; c. 20 slots of the same level as the investor/business center owner and these same manner as would any.other Php 1,000.00-paying member. same slots shall earn income for itself, for the center and for CACERES in the evade the controversy caused by the posting of the Advisory.20 This was confirmed in a Field Investigation Report21 prepared' by the EPD investigator: In one poster, it was telephone that CACERES has started using the name of ECC, which was registered on 16 March 2012, in the alleged lending and investment-taking activities, in order to On 20 March 2012, unnamed individuals have reported in person and over the 2o id, page 7, par. 21. 19 Id, page 6, par. 19. 21 ia, Annex "M". ECC-LIVELIHOOD SOCIAL SERVICES, INC. SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO.. GLOBAL MONEY UNLIMITED, ENFORCEMENT AND PROSECUTION Page 7 of 14 DEPARTMENT to their operations.22 Dita, Sta. Rosa, Laguna.23 explained that the change of name was due to the negative effect of the SEC Advisory has assumed the unauthorized lending and investment-taking business of CACERES and GLOBAL MONEY at their_commion office at 2nd fir. Margarita Commercial Center, Brgy It was further stated in the Field Investigation Report that ECc handed the following: a) CACERES brochure, b) ECC Recruitment Genealogy Chart, c) Branch Office located at the Upper Ground Floor, Dona Consolacion Bidg., Araneta Center, Cubao, Quezon City. It was confirmed that ECC is engaged in the same business as CACERES. The investigators attended the business seminar and were ECC membership forms and d) ECC ID form.? On 29 March :2012, the EPD Investigators conducted surveillance at the Cubao the fotlowing: A "lending company" is defined under Section .3(a).of Republic Act No. 9474 as following definitions shall apply: "Sec. 3. Definition 'of Terms - For the purposes of implementing this Act, the institutions, investment houses, savings and loans associations, financing Iending investors." (Emphasis ours) than nineteen (19) persons. It shall niot be deemed to include banking companies, pawnshops, insurance companies, cooperatives and other credit institutions already regulated. by law. (a) LENDING COMPANY shall refer to a corporation engaged in granting loans from its own capital'funds or from funds sourced from not more The term shail be synonymous with CACERES is clearly. engaged in: lending money using an expired registration with the and the statements made by Mr. Caceres and by some of the members/investors, Commission. Based on the facts and evidence gathered consisting of marketing plans, flyers 24 id," par. 25; Annexes "N", "N1", "N2", "N3", "N4" and "N5" 22 d 3 Id., page 7, par. 24. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. SERVICES, INC. ENFORCEMENT AND PROSECUTION DEPARTMENT Page 8 of 14 as a corporation, not as a partnership, and must have an authority to operate issued by the Commission. Section 4 of R.A. 9474' provides the following: Moreover, Section 4 of R.A. 9474. provides that a lending company must operate business of granting loans to the public one year after the date of effectivity of this Act. "Sec. 4. Form of Organization. - A lending company shall be established only as a CORPORATION: Provided that existing lending investors organized as single proprietorships or partnerships shall be disallowed from engaging in the No lending company shall conduct business unless granted an authority to operate by the SEC." (Emphasis ours) partnership but must be done through a corporation. In this. case, CACERES was Partnership of CACERES had already expired on 14 June 2009. CACERES has not even attempted to establish nor has been established as a corporation. registered with the Commission as a partnership. To reiterate, the Articles of Thus, the business of lending money can no longer be carried on under a Show Cause Order.26 Iending. company,, as certified by the CFD.25 2012, CFD informed EPD that CACERES was apprised of this requirement through a Further, CACERES does not have authority from this Commission to operate as: a In a Memorandum dated 21 February of the Securities Regulation Code (SRC).27 CACERES has likewise engaged in_the sale of unregistered securities in violation interest or participation in a profit sharing agreement, as defined under SRC, Section 3.1 as follows: Such sale of securities was in the form of investment contracts and certificates of interests in a corporation or in a commercial enterprise or profit-making venture "Sec.3. Definition of Terms. - 3.1. "Securities" are shares, participation or 26 Id., Annex "D". 27 RA 8799. 25 Id., Annex "C" SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED ECC-LIVELIHOOD SOCIAL SERVICES, INC. Page 9 of 14 ENFORCEMENT AND PROSECUTION DEPARTMENT character. It includes: evidenced by a certificate, contract, instrument, whether written or electronic in X X X (emphasis ours) (b) Investment contracts, certificates of interest or participation in a profit sharing agreement, certificates of deposit for a future subscription; subparagraph (G) of the Amended Implementing Rules and Regulations of the SRC as follows: An "investment contract" has been defined under Rule 3 paragraph 1. G. (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 contract means a contract, transaction or scheme to use the money or property of others on the promise of profits. 1.: An investment is presumed to exist whenever a person seeks 2. A common enterprise is deemed created when two (2) or more investors.'pool' their. resources: - creating a common enterprise, even if the promoter receives nothing more than a broker's commission." investment contract in our jurisdiction must be proved to be (1) an investment of money, (2) in a common enterprise, (3) with expectation of profits, (4) primarily from efforts of others, viz - Homes Unlimited Corporation v. Securities and Exchange Commission,28 held that an To be a security subject to regulation by the SEC, the Supreme Court, in Power and Regulations of R:A. No. 8799 as a 'contract, transaction or scheme "An investment contract is definied in the Amended Implementing Rules 28 G.R. No. 164182, 26 February 2008. SERVICES, INC. CACERES LENDING INVESTOR CO. ECC-LIVELIHOOD SOCIAL SEC-CDO Case No. 04-12-003 GLOBAL MONEY UNLIMITED, Page 10 of 14 ENFORCEMENT AND PROSECUTION DEPARTMENT (collectively: "contract") whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.' under the Securities Act, 'regardless of whether its issuer was engaged in state; any investment contract. covered by the Howey Test must be registered fraudulent practices. the Securities Act. Thus, it ruled that the use of the catch-all term 'investment 'embodies a flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of. profits.' Needless to contract' indicated a: congressional intent to cover a wide range of investment transactions. It established a test to determine whether a transaction falls within transaction, contract, or scheme whereby a person (1) makes an investment of money, (2) in a common enterprise, (3) with the expectation of profits,: (4) to be derived solely from the' efforts of' others. Although the proponents' must establish all four elements, the US Supreme Court stressed that the Howey Test US. Supreme Court was: confronted with the issue of whether the Howey transaction constituted an 'investment contract' under the Securities 'investment contract' was not defined by the Act or illumined by any legislative report, held that. 'Congress was using a -term whose meaning had been crystallized' under the state's 'blue sky' laws in existence prior to the adoption of the scope of an 'investment.contract'. Known as the Howey Test, it requires a Act's definition of 'security'. The US Supreme Court, recognizing that the term contract under R.A. No. 8799. Our definition of an investment contract traces its roots from the 1946 United States (US) case of SEC v. W.J. Howey Co.,.328 U.S. 293, 66 S. Ct. 1100, 163 A.L.R. 1043, 90 L. Ed. 1244 (1946). In this case, the "It behooves us to trace the history. of the concept of an investment subject to regulation' by the SEC, an investment contract in our to unrealistic results. It:reasoned out that its flexible reading is in accord with invests his money in a common enterprise and is Ied to expect profits not solely but primarily from the efforts of others. Thus, to be a security come 'solely' from' the efforts. of others should not be given a strict interpretation. It held that a literal reading of the requirement 'solely' would lead the statutory policy of affording broad protection to the public. Our R.A. No. 8799 appears to follow this flexible concept for it defines an investment contract as a contract, transaction or scheme (collectively 'contract) whereby a person 9tCircuit of the US Court of Appeals ruled that the element that profits must Enterprises, Inc. et al. 474 F. 2d 476, 414 U.S..821, 94. In this case, the After Howey came the 1973 US case of SEC v. Glerin W. Turner CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SERVICES, INC. SEC-CDO Case No. 04-12-003 ENFORCEMENT AND PROSECUTION DEPARTMENT Page 11 of 14 efforts of others." (Emphasis supplied) jurisdiction must be proved to be: (1) an investment of money, (2) in a common enterprise, (3) with expectation of profits, (4) primarily from to earn profits from the efforts of these down-ines. CACERES also lures people into the for each participant in the' scheme. scheme by the promise of shares in the profits. Edmundo C. Caceres Jr. has personally explained that by recruiting more people, the scheme guarantees income to the recruiter, to the business owner and to CACERES.-- proceeds having been earmarked authorized to recruit more people as down-lines in order to recover his investment and In this case, a member becomes a participant of the scheme and thereby. a return on his investment under the CACERES marketing plan which promises receive Php 500.00 as a direct recruiter for every two (2) down-lines. The same applies in the case of business center investors. Thus, the payment of the membership fee of Php 1,000.00 is considered an investment of money. commits money to an enterprise or venture in a manner that subjects himself to instant case, an investor invests his money by paying a membership fee of Php two (2) other investors or down-lines. On the other hand, the said investor will.receive unlimited income through the recruitment of additional down-lines according to Edmundo Caceres Jr on 9 and 12 March 2012. In other words, the said investor will financial loss (SEC v. International Mining Exchange, Inc., 515 F. Supp. 1062). In the 1,000.00. The said investor subjects himself to financial loss in case he cannot recruit As to .the first element, an investment of money occurs when an investor satisfies the commonality element of the modified Howey test involves an inquiry into whether said transaction involves the joint participation of more than one investor in investor and. the down-lines. To reiterate, a common enterprise is deemed created when two (2) or more investors "pool" their resources. Several tests have evolved to determine what constitutes "common enterprise".29 One of these tests is the horizonta! commonality approach. Under this test, the determination of whether a transaction The second element requires that a common enterprise exists between the said 29 In the Matter of Octopus Network, Inc., SEC-PED Case No. 98-2220, 22 May 1998. SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SERVICES, INC. DEPARTMENT Page 12 of 14 ENFORCEMENT AND PROSECUTION the investment of funds: or the sharing of profits.30 Furthermore, joint participation by a common purpose, is required in order to satisfy the common enterprise element.31 investors in the same investment enterprise, achieved by pooling the invested funds for pooling .of resources when the down-lines each pay the membership fees of Php recruit two (2) additional down-lines. These down-lines are authorized to recruit two and the down-lines in the same enterprise. Thus, a common enterprise exists by the 1000.00. (2) down-lines each. In other words, there is a joint participation by the said investor In this instant case, common enterprise exists where the said investor is made to . works correctly, should come from membership fees paid and direct recruitment. his investment."32 In this case, members flock to CACERES primarily for the income ons. In fact, not one of the complainants had raised the legitimacy of the insurance company that was contracted by CACERES as well as the manner by which the members may claim proceeds from the insurance policy when the need had arose: In the case of business: center investors, the involvement in the scheme is primarily motivated by quick returns and unlimited income potential - all these, if the scheme the court has meant either capital appreciation resulting from the development of the initial investment, or participation in earnings resulting from the use of investors' funds. In such cases, the said investor is "attracted primarily by the prospects of a return on opportunity and not for the insurance and social protection package that are mere add- The third element is that the said investor is lead to anticipate profits. By profits, whote scheme would have collapsed in no time. On the other hand, the central selling the stability of the enterprise. In other words, the members are dependent on the the CACERES scheme, -definite amounts are earmarked from membership fees paid. Without the down-lines who continuously supply the enterprise with fresh funds, the point of the scheme is the ability to convince people of the viability, sustainability and The last element is the anticipation of profits from the efforts of others. Under 30 Id., citing 69 Am Jur 2d citing Stenger v. R.H. Love Galleries, Inc. 741 F2d 144. 31 Id., citing Wasnowic v. Chicago Bd. of Trade 352 F Supp 1066. 32 Power Homes Unlimited Corporation v. Securities and. Exchange Commission. SEC-CDO Case No: 04-12-003 CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED, ECC-LIVELIHOOD SOCIAL SERVICES, INC. Page 13 of 14 ENFORCEMENT AND PROSECUTION DEPARTMENT image for the enterprise and for the scheme CACERES seeks to propagate.This of profits, promotions and advertisements, and loans and benefits administration. efforts of the CACERES and the said investors to create an appealing, profit-iaden requires some managerial efforts at fund collection, proper computation and distribution to use the membership fees of the investors on the promise of unlimited income once the latter has secured additionai down-lines. Furthermore, the investment contract is presumed to exist since CACERES seeks The SRC is explicit that as a general rule, securities must be registered with the Commission before being offered or sold to the public in order to protect the investing public from worthless securities. SRC, Section 8 provides: Thus, CACERES is engaged in the sale of securities without proper registration. Commission. x x x" (emphasis ours) be sold_or offered for sale or distribution within the Philippines, without a registrationstatementduly..filed.with.and' approved by. the "Sec. 8 -- Requirements of Registration of Securities. -- 8.1. Securities shall not and collecting from them Php 1000.00 membership fee and by engaging them in:a scheme that involves continuous recruitment with the promise of unlimited income. Such activity was done without a registration duly filed with and approved by the Commission. Thus, CACERES has engaged in the sale of securities by enticing people to pay. any and all persons, claiming and acting for and in behalf of respondents, are hereby lending money to the public without being established as a corporation and in the Commission, in violation of Section 4 of R.A. No. 9474 and Section 8 of SRC, respondents CACERES LENDING INVESTOR CO. GLOBAL MONEY UNLIMITED and ECC- LIVELIHOOD SOCIAL SERVICES, INC. are engaged in the unauthorized business of respectively, the respondents, their respective partners, representatives, agents, and unauthorized business of selling securities without the proper registration issued by thisl WHEREFORE, premises considered, there being a prima facie evidence that ECC-LIVELIHOOD SOCIAL SERVICES, INC. GLOBAL MONEY UNLIMITED, SEC-CDO Case No. 04-12-003 CACERES LENDING INVESTOR CO. ENFORCEMENT AND PROSECUTION DEPARTMENT Page 14 of 14 ordered to immediately CEASE and DESIST33 from further engaging in the business of lending and selling securities, until they have complied with the requirements of law and its implementing rules and regulations. FAIL NOT UNDER PENALTY OF LAW. SO ORDERED. Mandaluyong City, 17 May 2012 TERESITA J. HERBOSA Chairperson MA. JUANITA E. CUETO : RAUL J. PALABRICA Commissioner Commissioner MANUEL HUBERTO B. GAITE AD) M. JAL. Commissioner Commissioner 33 SRC, Section 5. Powers and Functions of the Commission - 5.1. The Commission shall act with transparency and shall have the powers and functions provided by this Code, Presidential Decree No. 902.A, Corporation Code, the Investment Houses Law, the Financing Company Act and the other existing Iaws. Pursuant thereto the Commission shall have, among others, the following powers and functions: X X X (i) Issue cease and desist orders to prevent fraud or injury to the investing public *On official business.