SEC revokes corporate registration of Cyfle

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June 1, 2025 | 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the corporate registration of a management consultancy services company for illegal investments activities.

The SEC Enforcement and Investor Protection Department canceled the corporate registration of Cyfle OPC for violating Section 44 of the Revised Corporation Code, which prohibits corporations from possessing or exercising corporate powers beyond what is conferred on it by law or by its articles of incorporation.

Based on its articles of incorporation, Cyfle was incorporated with the primary purpose of engaging in and providing management consultancy services to the general public.

The SEC, however, said that investigation found Cyfle to be offering investments to the public under a scheme, which promises investors a 30-percent return on their investment for a minimum of P50,000 under a one-year term.

“The act of (Cyfle) through its affiliates in allowing certain persons acting as their agents or representatives to make public presentations of their investment scheme, inviting the public to invest in the companies through social media renders them liable for the unauthorized public offering of securities and the misrepresentation committed in connection with such public offering,” the SEC said.

A fine of P1 million was also imposed by the SEC against the company for offering securities to the public without registration and license from the commission.

Cyfle, its sole stockholder-director-president and nominee, as well as alternate nominee, were also directed to pay P1 million as administrative sanctions.

An advisory against Cyfle has been issued by the SEC as early as July 2024, warning the public against the company’s unauthorized solicitation of investments.

Cyfle’s investment scheme was found by the SEC to be in the nature of a Ponzi scheme, where the returns of early investors are sourced from the payment of new investors.

“The investment scheme of (Cyfle) also operates to defraud investors as it deceives the investing public by making it appear that they have the authority to deal in securities,” the SEC said.

“This also amounts to serious misrepresentation as to what they can do or are doing to the damage and prejudice of the investing public,” it said.