SEC warns vs solicitation of investment in Zambo PDF Print E-mail
Tuesday, 13 January 2015 11:39

The Securities and Exchange Commission-Zamboanga Extension Office has warned against “on-going solicitation of investment from the public of a corporation involved in health or hospital services.”

Atty. Jesus Salvador Uro, SEC-Zamboanga Extension Office director, issued the warning Monday after they received information that several individuals or groups of persons have been offering or “pre-selling” securities to the public in the form of shares of stock in hospitals currently under construction.

To attract investors, these shares of stock allegedly grant the purchasers certain hospital benefits, such as, but not limited to waived or discounted Operating Room fees; free or discounted private room, ward and Intensive Care Unit (ICU) accommodations; discounts on use of ICU equipment, medicines, medical supplies and other merchandise; and, discounts on hospital services as well as Out-Patient and In-Patient case rates.

Uro said that strictly and legally speaking the solicitation of investment in exchange of a promised medical or health services and stocks, without prior registration with SEC is a violation of the Securities Regulation Code (SRC).

Uro informed the public that these shares of stock being offered are within the definition of “securities” under Section 3.1 of the SRC and are required under Section 8 of the SRC to be registered with the SEC before being offered or sold to the general public.

“The public is thus advised to exercise prudence in dealing with any individual or groups of persons offering for sale shares of stock in hospitals,” Uro added.

He urged “anyone who has knowledge or information about any transaction involving these securities to report such activity immediately to the Commission so that appropriate measures can be taken.”