Sherman Brothers Management Limited, Inc.

SECURITIES AND EXCHANGE COMMISSION SEC Bldg.,EDSA, Greenhills Republic of the Philippines Mandaluyong City

IN THE MATTER OF SHERMAN BROTHERS CED Case No. 01-2593 MANAGEMENT LIMITED, INC. K

CEASE AND DESIST ORDER

Subject of numerous complaints from its foreign investors/clients is SHERMAN BROTHERS MANAGEMENT LIMITED, INC. (SHERMAN), who claimed that they had been defrauded of their investments in foreign currency (US$) in connection with its investment solicitation and foreign securities dealing/brokering activities.

Records show that subject corporation is duly registered with the Commission on December 29, 2000 per SEC Registration No. A-200018721, the purpose of which is primarily as follows, to wit:

entities necessary in meeting the objectives of the .enterprise, such as product development, marketings firms, associations, corporations, partnerships and other promotions, advertising, corporate imaging and product launching and designs." "to engage in marketing consultancy to persons.

Commission dated March 19, 2001 shows that subject corporation has not been issued Certification issued by the Market Regulation Department (MRD) of this

any secondary license to act as broker/dealer in securities.

public as its articles of incorporation as approved by the Commission do not show the inclusion of such business purpose. Likewise, subject corporation is not authorized to solicit investments from the

of securities and considering the serious nature of the misrepresentation committed As SHERMAN has not been issued a license to engage in the buying or selling

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and the commission of "ultra vires"-act, there is an urgent necessity to restrain or enjoin subject corporation from engaging in the business of broker/dealer in securities and in the authorized solicitation of investment in order to safeguard and protect the interest of the investing public in general

under their authority are hereby ordered to CEASE AND DESIST from soliciting bylaw,SHERMAN BROTHERSMANAGEMENT LIMITED;INC.,. its buy and sell shares of stock or other form of securities or otherwise engage in the officers/dir ectors, agents, representatives and any or all persons claiming and acting and/or acceptinig money for investment purposes and also from accepting orders to business of a broker/dealer in securities. WHEREFORE, pursuant to the power and authority vested to the Commission

Desist Order, may, within five (5) days from receipt of this Order, file a formal request for the lifting thereof. In accordance with law, the above specified persons subject of this Cease and

SO ORDERED

City of Mandaluyong, Metro Manila, March 28, 200 1.

ATTY. EMILI Directod, CED .AQUNO

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SECURITIES AND EXCHANGE COMMISSION Mandaluyong City, Metro Manila SEC Building, EDSA, Greenhills Republic of the Philippines DEPARTMENT OF FINANCE

Compliance and Eufo Cut Deiartmeut

In the matter of SHERMAN BROTHERS MANAGEMENT LIMITED, INC CED CASE NO. 01-2593 Y

GREETINGS

JOSELITO J. DELA PAZ Makati City 7862-C St. Paul St.. Pasong Tamo 45 Eucalyptus St., B.O. Sto. Nino Western Bicutan, Taguig, Metro Manila RHODA P. CAGALAWAN

2458 Arroliano Avenue, Singalong, Manila ISRAEL V. DE CASTRO Pasig City NANETTE D. TEANO 137 Villa Gloria Subdivision

FE B. GONZALES 47 Bremen Street, Fairview Quezon City MARY EUNICE P. ABSIN 37 Bascom St., North Fairview Quezon City

S ir :

ORDER- of the Commission on the above-entitled case dated March 28, 2001. Transmitted to you herewith is a copy of the CEASE AND DESIST

Please acknowledge receipt hereof.

Mandaluyong City, Metro Manila, March 29, 2001.

LORENZA SOSITO-OBLIMAR Records In-Charge

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