THE Securities and Exchange Commission (SEC) has issued a cease-and-desist order against a motor vehicle company for conducting unauthorized financing activities.
In the issuance, the commission said that it has revoked the certificate of incorporation of The Ark Vehicle Trading & General Merchandise, Inc. due to serious misrepresentation regarding the corporation’s capabilities.
The regulator said that the company’s financing schemes involved clients paying the monthly amortization and down payment directly to Ark Vehicle instead of the bank or in-house financing.
“By disbursing and paying on behalf of the client, Ark Vehicle mainly engaged in the primary purpose of a financing company, which is extending credit facilities to consumers” the commission said.
It added that the company’s credit terms included a contract for the sale of property or services, either for present or future delivery, in which part of all or the price is payable after the sale or contract is made.
The SEC said that the entity is conducting unauthorized financial activities that are not part of its certificate of incorporation.
Ark Vehicle stated in its incorporation papers that it shall “conduct and carry on the business of buying, selling, trading, distributing, marketing at wholesale and retail all kinds of cars, car accessories, upholstery, car alarm, and other related products.”
In 2020, the commission’s Enforcement and Investor Protection Department received complaints, reports, and inquiries alleging that the entity was engaged in financing activities that require prior authority.
In April 2023, the regulators issued a show-cause order to the company’s incorporators, directing them to explain why its certificate of incorporation should not be revoked and why no administrative sanctions and/or criminal charges should be filed against and imposed upon it.
“To date, despite such receipt and presumptive notice of the show-cause order as detailed above, the company failed to respond, which shall be construed as a waiver of its right to be heard,” the SEC said.
The company has yet to respond to a request for comment. — Adrian H. Halili
