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Based on numerous reports and informationgathered by the Commission, THE SEASHORE BEACH CLUB INC and MAV DISCOVERY BEACH RESORT DEV’T CORP.“(“DISCOVERYRESORTS”)headedby their president and chairman of the board Mr. Arnel S. Mindanao are found to be offering and selling clubshares to the public without authority and license to do so.
According to their website theseashore.ph, THE SEASHORE BEACH CLUB INC is a membershipresort and the certificates issued to members are non-proprietary in nature. The project was allegedly conceptualized by its president Mr. Arnel S. Mindanao, who is a seasoned sales and marketing person having gained more than 20 yearsof experiencein selling various real estate projects in the Philippines in the local market and to foreign nationals.
Purportedly, THE SEASHORE BEACH CLUB INC and DISCOVERYRESORTSareoffering theirclub sharesin the amountPhp 834,900 for their San Juan, Batangas project and Php 900,000(now Php 1,035,000) for theirCoron, Palawan project which areavailable in three payment options:Option A) Deferred Payment of 36, 48 and 60 months; Option B) Spot down payment of 30% and the 70% remaining balance to be paid in 36,48, 60 months; and Option C) Spot cash payment and get 15% discount. Allegedly, THE SEASHORE BEACH CLUB INC and DISCOVERYRESORTSareenticing the public toavail of their club shares and promising the following privileges to investors:1)Profit sharing of 30% of its annual net incomewhichwill be divided to all the members; 2)20% income referral when club membership is used by family or friends;3)Life-time membership which can be inherited by heirs, with free one night stay for family members once a year; and4)Certain percentage discounts from accommodation, water sports activities, restaurants, sports facilities, and its amenities.Based on the foregoing, the club membership shares being offered areproprietary sharesand are considered as securitiesunder Section 3 of the Securities Regulation Code (SRC). Hence, a secondary license or certificate of permit to offer securities is required before SEASHOREand DISCOVERYRESORTScould offer such club membershipshares to the public.Further, the scheme of SEASHOREand DISCOVERYRESORTSinoffering said shares to the public is considered as Securities Solicitationwithout a license or permit to do so. As the aforementioned scheme involves the offer and sale of securities to the public, the SRCrequires that these securities are duly registered with the Commission and that concerned entity or its agents have appropriate registration and/or license to sell such securities to the public pursuant to Section 8 of the SRC.Records of the Commission show that THE SEASHORE BEACH CLUB INC and DISCOVERYRESORTSare registered as corporationswith Company Registration Nos. CS201612679 and CS201723866, respectively. However, such registration merely grants juridical personalitiesto the corporations but does not authorize themto issue, sell or offer for sale securities to the public nor undertake business activities requiring a secondary license from the Commission.Furthermore, a Cease and Desist Orderwas already issued against SEASHOREon 31 August 2017, on the grounds of non-registration of securities, non-registration of broker or dealer of securities and commission of ultra vires acts. On 24 January 2018, a settlement agreement was entered with the Commission. However, SRC Rule 55.1.3.11. is clear in stating that if the proposer shall fail to comply with any of the terms of the settlement offer, the settlement shall be considered withdrawn and the investigation or proceedings against the proposer shall be reinstated.In view thereof, the public is hereby advisedtoexercise caution in dealing with any individual or group of persons engaged in securities solicitationfor and on behalf of SEASHORE andDISCOVERYRESORTS. Thepublic is further advised NOT TO INVESTor to STOP INVESTINGin the securities being offered by the subject entities or their representatives.
Everyone is reminded that aside from the strictpenaltiesimposed by the Commission for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations it enforces, the Bayanihan to Heal as One Act (Republic Act No. 11469) also punishes those participating in cyberincidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails or other similar acts.Further, those who invite or recruit others to join or invest in such venture or offer securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of Securities and Exchange Commission vs.Oudine Santos(G.R. No. 195542, 19 March 2014).Should you have any information regarding the operation of SEASHORE andDISCOVERYRESORTSor any securitiessolicitation activity by any individual or group of individuals representing SEASHORE andDISCOVERYRESORTS, please send your report to the Enforcement and Investor Protection Department at epd@sec.gov.ph.For the guidance of the public.Pasay City, 07 July2020