The Securities and Exchange Commission (SEC) has revoked the registration of Suhail Medical Center, Inc. for unauthorized solicitation of investments from the public.

In its order, the SEC Enforcement and Investor Protection Department (EIPD) said it found that the company headed by Jesser T. Cordova has been publicly offering and selling securities without the necessary secondary license from the Commission.

In doing so, Suhail Medical Center violated the Revised Corporation Code of the Philippines.

The company’s activities also constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree No. 902-A.

The Commission has warned the public against investing in Suhail Medical Center as early as November 16, 2021 through an advisory.

Suhail Medical Center has been soliciting investments from the public worth P1.06 million for the co-ownership seat to its supposed hospital in Calamba, Laguna. Investors also have the option to purchase half a seat worth P550,000.

The company promised investors returns in the form of quarterly revenues based on the hospital’s performance, free laboratories and check-ups for the co-owners and their next of kin, as well as lifetime income.

Suhail Medical Center’s scheme involved securities, particularly an investment contract, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the EIPD.

As a form of security, investment contracts must be registered with the SEC before they can be sold or offered within the Philippines, pursuant to Section 8 of the Securities Regulation Code.

However, records of the Commission show that Suhail Medical Center is not authorized to solicit investments from the public as it has not secured the prior registration and/or license for such activities.

The EIPD further noted that Suhail Medical Center’s promised profits and returns would be derived from the investments of new member-investors, not its actual operations.

“Necessarily, this scheme is unsustainable as it must rely on a continuous inflow of new investors in order to make pay-outs to earlier investors, all the more made glaring considering that it has no actual operations yet to speak of,” the order read.

Further, the EIPD has secured certification from the Health Facilities and Services Regulatory Bureau of the Department of Health stating that there was no license issued to a certain Suhail Medical Center located in Calamba, Laguna, nor was there an application for such health facility.

“Wherefore, for violation of Section 44 of the Revised Corporation Code of the Philippines (R.A. 11232) in relation to Sections 8.1 and 28.1 of the Securities Regulation Code, P.D. 902-A and Section 179(j) of the RCCP, the Certificate of Incorporation and the registration of Suhail Medical Center, Inc., as a corporation, is hereby REVOKED,” the order read.