By Jennifer P. Rendon
Controversial investment scheme company owner Patrocenio C. Chiyuto, or more popularly known as Don Chiyuto and Don Zhang Lee Chiyuto, might find himself with more legal woes soon.
The National Bureau of Investigation-Western Visayas (NBI-6) confirmed that a case against Chiyuto is due for filing.
Atty. Jeremiah Sargado, NBI-6 regional director, said cases against other Capiz-based investment scheme companies have overtaken the filing of cases against Chiyuto and other incorporators of Chiyuto Creative Wealth Document Facilitation Services aka Chiyuto Double Your Money Scheme.
“There would be at least five persons who will stand as complainants against Chiyuto and his cohorts,” he said.
Sargado said they could not say for now if the case will fall under syndicated estafa but “definitely, it will be in the range of large scale estafa.”
A few weeks ago, the Securities and Exchange Commission has revoked the of incorporation and the registration of Chiyuto Creative Wealth Document Facilitation Services OPC (One Person Company) for violating the Revised Corporation Code of the Philippines (RCC or Republic Act 11232) when it offered investment opportunities without a valid license.
In a 30-page order dated February 15, 2021, the SEC said Chiyuto Creative violated Section 44 of the RCC in relation to Sections 8.1, 28.1 and 26.1 of the Securities Regulation Code, Presidential Decree 902-A, and Section 179 (j) of the RCC
The SEC also fined Chiyuto Creative of Patrocenio Calvez Chiyuto Jr., (a.k.a. Don Chiyuto/Doc Don/Don Zhang Lee Chiyuto/Mr. Solve) PHP9 million for said violations.
The SEC said it also established the administrative liability of Chiyuto’s firm for violating pertinent provisions of the SRC, without prejudice to the “filing of criminal charges violation of the Securities Regulation Code, which is punishable by up to 21 years imprisonment.”
On February 1, the SEC also issued a cease-and-desist order against Chiyuto Creative which prevented it from “soliciting, selling and offering of investments to the public which are securities in the form investment contracts constitute clear violation of Section 8 of the SRC.”
It can be noted that the SEC probed Chiyuto Creative’s case after receiving information that it was allegedly engaged in a Ponzi scam or a type of investment scam where the money of one investor is given to another (robbing Peter to pay Paul, according to the SEC order).
One of the tips the SEC received claimed that Chiyuto Creative enticed the public to invest with a promise that their money will be “doubled in 1, 30, or 45 days on the promotion.”
The investment scheme offered by Chiyuto and his agents and representatives (otherwise known as the “Double-Your-Money Roulette Game” scheme) “commenced through the auspices of Chiyuto Creative Wealth Document Facilitation Services, a Department of Trade and Industry-registered entity with Certificate of Business Name No. 1593167 issued on February 18, 2020 under the name of Patrocenio Calvez Chiyuto Jr.,” according to the SEC order.
The operation was mainly based in Roxas City, Capiz, the SEC document indicated.
The SEC subsequently issued warnings that Chiyuto’s firm was “not authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the Securities Regulation Code.”
Subsequently, Chiyuto Creative Wealth Document Facilitation Services OPC was registered with this Commission under Company Registration No. 2020110003783-00 on 23 November 2020 as a one-person corporation or OPC.
The top officials indicated in the OPC registration were Patrocenio C. Chiyuto Jr. (sole stockholder-director-president), Judy B Pajarillo (nominee), and Felomina L. Andrada (alternate nominee).
Notwithstanding the warnings it issued, “the company’s offering/selling of securities or investments to the public continued unabated through its owner, agents, representatives, enablers and influencers,” the SEC added.
