SEC Files Money Laundering Complaint Against Silverlion

The Security Exchange Commission (SEC) filed a case against Silverlion Livestock Trading Corporation after it was found illegally taking public investments and involved in money laundering. 

Silverlion has been sued by the SEC and the Anti-Money Laundering Council (AMLC) for violating Section 4(b) of Republic Act No. 9160, also known as the Anti-Money Laundering Act (AMLA), as altered.  According to Section 4(b) of the AMLA, anyone who transforms, transfers, removes, moves, gathers, possesses, or uses any financial instrument or assets, knowing that it indicates, involves, or connects with the proceeds of any illegal activity, has committed money laundering.

The complaint had significant impact on a number of employees discovered to have taken part in the marketing of Silverlion’s investment outreach activities. 

• Ryan Cagod Ladoing, Chief Executive Officer
• Renan Lara Ladoing, President
• Michael Villalobos Berja, Vice President
• John Paul Lopez, Rose Marie Alvarez Guzman, and Nena Ewayan Algoy, Master Bagman 

The complaint also had a significant effect on Silverlion’s CEO Ryan Cagod Ladoing, President Renan Lara Ladoing, Vice President Michael Villalobos Berja, Master Bagman John Paul Lopez, Rose Marie Alvarez Guzman, and Nena Ewayan Algoy, who were discovered to have taken part in the marketing of Silverlion’s investment outreach activities.

According to the SEC, Silverlion fulfilled the four key requirements for money laundering, existence of criminal activity proceeds, and ownership of illegal financial proceeds. When Silvelion offered investments for the required licences from the commission, the SEC discovered Silvelion’s activity as unlawful. Additionally, the SEC determined that Silvelion had violated Republic Act No. 8799 of the Securities Regulation Code.  

Additionally, it was discovered that Silverlion solicited investments from the public in the range of P50,000 to P100,000 and promised a return on the investment of 35% within 15 days or 2.3% each day. A special deal featuring the buyer’s choice of car was also made available by the company to investors who locked in an investment of P400,000 for 60 days.

Cash was seized by agents of the Philippine National Police Anti-Cybercrime Group and the SEC Zamboanga Extension Office during the execution of a search warrant at Silverlion’s offices in Zamboanga City last year, totaling P17.89 million as proceeds of the illegal activity.

The investigation revealed that Silverlion had real and constructive ownership of the illegal activity’s proceeds. The legislation further stipulates that such a sum must be sought for confiscation in the government’s favour.

Given the numerous charges brought against it for the same offences before the Regional Trial Court of Zamboanga City, the lawsuit claims that the business cannot claim ignorance of the illegal activities.

The complaint stated, “Consistent with the overall scheme of Ryan and Renan Ladoing, and their cohorts, including the other respondents herein, in attaining their end goal of profiting from the illegal acts constituting violations of the SRC, and the seized cash of P17,888,925 they possessed either actual and/or constructive, there is a clear and convincing evidence that respondents committed money laundering under Section 4 (b) – possession of proceeds – of the AMLA.” 

If found guilty of money laundering, the defendant faces 7 to 14 years in jail and a fine of at least P3 million but no more than twice the value of the property or financial instrument. Following the cancellation of Silverlion’s corporate registration in January of last year due to its unlawful investment solicitation activities, a cease and desist order was previously issued against the business, its officers, directors, founders, and agents.

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