Holy Soul`s Mercy Incorporated

SEC Building, EDSA, Greenhills, City of Mandaluyong SECURITIES AND EXCHANGE COMMISSION Republic of the Philippines IN RE: SEC CASE NO. 05-2821 HoLY SOuLS MerCy INc. X CEASE AND DESIST ORDER from further-offering and/or selling Group Accident Insurance.and.Mortuary_Plans January 2005 filed by the Compliance and Enforcement Depariment. (CED for brevity)-of this Commission for the issuance of a Cease and Desist Order against Hoiy Souis Mercy, inc. (Holy Souls for brevity) enjoining respondent corporation Pending consideration before the Commission is the Motion' dated 24 this Commission. to the public and to its members until such time that it will be able to register its offering with the Non-Traditional Securities and Instruments Department (NTD).of The antecedent facts are as follows: laws with SEC Certificate :of Registration No. CN200254308 issued by the mortuary assistance. Cagayan De Oro SEC-Extension Office with the primary purpose of promoting and providing affordable mutual program to active members in terms of Holy Souls'. Mercy, Inc., is a duly registered corporation under Philippine Need Rules. offering and/or selling of mortuary plans: to: .the public by respondent corporation without the requisite licenses from the Sec. 16 of the Securities Regulation Code and Rules 3. 4, and 15 of the New Pre- Manilo Fortich, Bukidnon filed a letter complaint dated 11 December 2003 with the Commission requesting NTD to conduct an investigation on the alieged On 16 December 2003, Desiree Presillas of Agusan Canyon Camp, Philips) Commission in violation of had 2000 cardholders who were required to pay a lifetime membership of One Hundred (100.00) Pesos originally Fifty(50.00) Pesos only to entitle them to the availed of the said program and .are currently paying monthly dues to automatic one (1) year accident insurance and an opportunity to avail of the corporation's Special Program 2000. One third (1/3) of the members have respondent corporation. It if further alleged that as of February 24, 2004; respondent corporation illegal. coilecting contributions from its members in case its operations proved to be complaint dated August 10, 2004 seeking to enioin respondent from further On August 13. '2004. twenty-four members/plan holders filed their joint- Commission to operate as a Pre-Need Company.or as a General Agent for any pre-need company. corporation is not or has not been issued a -license or authorized by the On September 10,:2004.: NTD issued 'a certification that respondent -general public" clearly disclosed that respondent corporation offered securities operate as a.Pre-Need'Company or as a General Agent to sell pre-need plans. cause irreparabfe injury and great damage to the general public" and that the Department(CED): that respondent corporation "undoubtedly engaged in the offering and selling of pre-need plans without the requisite license from the Commission which,:uniess immediately restrained, will continue to defraud and the.corporation_can.do or is"doing to the great prejudice_or damage. to the or pre-need plans. to the public without the necessary license or permit to "acts of.respondent corporation constitute serious misrepresentation as to.what City, as well as,' the , findings of the Compliance ' and " Enforcement The investigation report of Mr. Edwin Florida of the SEC-Cagayan De Oro order as prayed for to serve the best interest of.and provide ample protection to the investing public. The foregoing acts of the corporation necessitate the issuance of the immediately CEASE AND DESIST, under pain of contempt from further offering. approved by the SEC and corresponding permit to offer/sell pre-need plans is issued by the'Commission. agents, representatives, conduits, assigns and any and all persons claiming and soliciting, or otherwise offering or selling group accident insurance and mortuary plans to the public until the requisite application for registration is duly filed and acting for and in behalf and under its authority are hereby ordered to PREMISES. CONSIDERED. Holy Souls Mercy Inc.. , its officers, directors period stated hereunder, why the Cease and Desist Order should not be made permanent The corporation is further directed to SHOW CAUSE, within. five (5) day request for lifting of this CDO within a non-extendible period of. five (5) days from settiement offer and iwould opt for summary procedures. receipt hereof, stating therein whether the corporation is willing to enter into a Pursuant to SEc Circular No. 4, Series of 2001, Hoty Souls may file a formal information and appropriate action. Oro Extension Office which also have jurisdiction over subject corporation for its Let a copy of this Order be furnished the NTD 'and the SEC-Cagayan De SO ORDERED : 1February 2005 Mandaluyong City, Philippines. For: The Commission En Banc Vernette g. umAlI-PAco Genera! Counse!