The Securities and Exchange Commission (SEC) reported that it has filed a criminal complaint against the group of a casino junket operator and some individuals for engaging in unlawful activities linked to money laundering.
In a complaint filed before the Department of Justice on May 31, 2024, the SEC charged Philippine National ESports League, Horizon Players Club, and Team Z, all headed by Hector Aldwin Liao Pantollana, for alleged violations of the Securities Regulation Code (SRC) and the Anti-Money Laundering Act (AMLA).
The SEC said the SRC prohibits the sale or distribution of securities without a registration statement duly filed and approved by the Commission. Brokers and dealers of securities must likewise secure the necessary licenses from the SEC.
Any violation of the provisions of the SRC is considered an unlawful activity or a predicate offense for money laundering under the AMLA.
The Commission implicated the alleged leaders of the casino junket operations (CJO), namely Zeus Liao Pantollana, Reymond Lacsamana Galang, Quarry Quieng, and Erwin L. Bangalan.
Also implicated were those who participated in the investment-taking activities of the Pantollana group, including Den Abad, Daniel Agbisit, JM Almodiente, Rhoda Andrada Casuga, Avegail Namoc Cruz, Maricel Raposon Cesumision, Stephen Cecilia Dorog, Jennilyn Galletes Delos Santos Floresca, Raffy Palangdan Floresca, Heinn Carreon Humilde, Zen Carreon Humilde, Ariel Ramos Katigbak, Vanessa Mendoza Magboo, Paul Tolentino Maranan, Gumba Martinada, Kim Mejica, Christian Jerome Quizon, Neshema Rock Lorico Renta, Ronaldo Embing Renta, James Christopher Tan Roxas, Mikhaela Damasco Ty, Maria Cecilia Tabano Vizcayano, and Joseph Junia Zabala.
The complaint was filed after the SEC Enforcement and Investor Protection Department found the group to be soliciting investments from the public to finance their casino junket operation and casino financing activities.
The group allegedly issued loan contracts to investors with a promise of guaranteed profit ranging from 60 percent to 111 percent per annum, with the payment of profits and return of capital guaranteed by postdated checks.
“Hector Pantollana’s CJO scheme masquerading as a mere Contract of Loan and secured by postdated checks is clearly an investment contract and undoubtedly, further an evidence of indebtedness. Therefore, a security within the purview of [the SRC],” the complaint read.
Sections 8 and 28 of the SRC provide that securities shall not be sold or offered for sale without a registration statement duly filed and approved by the Commission, and expressly prohibits the sale of such securities by a company or broker without the proper registration and licenses issued by the SEC.
Meanwhile, Section 26 makes it unlawful for any person to employ any device, scheme, or artifice to defraud the public in connection with the same of securities. Persons found guilty of the provisions of the SRC shall suffer a fine of up to P5 million, or imprisonment of up to 21 years, or both.
The EIPD further noted that Hector Pantollana’s CJO has the characteristics of a Ponzi scheme that “lures investors under the promise of big profits and are actually repaid only with the investments coming from the new investors joining the scheme and tends to collapse soon after investors stop joining it.”
Philippine National ESports League, Horizon Players Club, and Team Z are not registered as corporations with the SEC.
Accordingly, they have no secondary license from the Commission that would authorize them to conduct investment solicitation activities from the public.
In addition to a prayer for the filing of a criminal information for violations of the SRC, the SEC has prayed that the DOJ run after the proceeds of the group’s crime and any property used as a means of committing such offenses.
Prior to the filing of the criminal complaint, the SEC has issued a cease and desist order against the group as early as March 23, 2023 to stop them from their illegal activities. The order was made permanent on Oct. 12 of the same year.