BAGUIO CITY — The Securities and Exchange Commission (SEC) has taken action against Casa Infini Builders and Realty Co. Ltd., as well as Ray Education Directions Consultancy Services and their associated entities, ordering them to immediately cease soliciting investments from the public under the false pretense of real estate-related opportunities.

According to a statement issued by the SEC, the Commission En Banc on June 8, 2023, issued an order directing Casa Infini Builders and Realty, Ray Education, Casa Infini Realty Management Co. Ltd., Ray International Philippines Corporation (operating as Ray Education Directions Consultancy Services, Be Unrivaled Productions, and Sine Cordillera), and Casa Infini Properties and Development Corp. to refrain from offering or selling investments to the public without the necessary license from the SEC.

The order also extends to individuals such as Jennylyn Galletes De Los Santos Floresca, Raffy Palangdan Floresca, Jovielyn Malonzo Mina, Jinky delos Santos Lontoc, Jacqueline Corel Melchor, Peter Omaweng Wasing, Eric M. Pineda, Jerick Bambi Sadernas, and Kenjie Millar, as well as all representatives, salesmen, solicitors, agents, uplines, enablers, and influencers acting on behalf of these groups.

All the entities involved are based in Baguio City, and identify Jennylyn De Los Santos as either a partner or incorporator.

Read: Baguio City Prosecution Office has dismissed alleged illegal operations filed by the SEC and other law enforcement agencies against Casa Infini Builders and Realty Co. Ltd., as well as Ray Education Directions Consultancy Services and their associated entities

In addition to the cessation of their investment offerings, the SEC has instructed the groups to halt any online presence related to their investment schemes.

They are further prohibited from engaging in any financial transactions involving funds in their depository banks, as well as transferring, disposing, or conveying any assets associated with these activities to safeguard the interests of investors.

The SEC’s enforcement and investor protection department (EIPD) initiated the order after uncovering evidence that the Casa Infini group and its officers and incorporators were actively soliciting investments from the public through unregistered securities in the form of investment contracts.

The groups had enticed individuals to invest in purported real estate projects in Baguio City, either as buyer-investors or partner financiers.

Buyer-investors were told that their investments would finance the development of real properties claimed to be owned, managed, and operated by the Casa Infini group.

They were promised a guaranteed monthly income of over P33,000 for 20 months, based on the appreciation of the projects’ value.

Meanwhile, partner financiers were offered the opportunity to participate in real estate development plans or programs, requiring investments ranging from P300,000 to P10 million.

In return, they were promised passive income ranging from 3% to 4.8% over eight to 20 months, as stipulated in the contract.

According to the EIPD, the groups have already convinced more than 600 investors to participate in these schemes.

While Casa Infini Builders and Realty, Casa Infini Realty Management, Ray International Philippines, and Casa Infini Properties and Development are registered partnerships or corporations, Ray Education is a sole proprietorship registered with the Department of Trade and Industry.

However, none of these entities have been issued a secondary license allowing them to offer or sell investments to the public.

Moreover, it has come to light that Jennylyn De Los Santos, a common partner or incorporator, is allegedly the wife of Raffy Palangdan Floresca, who is the subject of a previous SEC cease and desist order issued on March 16 for involvement in an unauthorized investment scheme conducted by the Horizon Players Club.

The investment schemes operated by these entities involve the sale and offering of securities in the form of investment contracts, where individuals invest their money in a common enterprise and anticipate profits primarily from the efforts of others, as determined by the SEC.

The SEC cites Section 8 of Republic Act No. 8799, known as The Securities Regulation Code (SRC), which states that securities cannot be sold or offered for sale or distribution within the Philippines without a duly filed and approved registration statement from the SEC.

The promise or offer of profits or returns sourced from investors’ own investments, as well as the offering or selling of investment schemes without the necessary license or permit from the Commission, constitutes investment fraud under Section 3(f) of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).

These activities are deemed violations of the FCPA, specifically Section 11 and Rule 11, Section 1 and 2, Paragraphs (i) and (iii) of the SEC FCPA Rules and Regulations.

The order issued by the SEC emphasizes that the unauthorized investment-taking activities of these groups necessitate an immediate cease and desist order due to the potential for widespread harm and financial losses to the investing public if left unchecked.

The Commission En Banc also highlights that the terms and conditions employed by these groups bear resemblances to a Ponzi scheme, as they promise exceptionally high returns with minimal or no risk to investors.