SEC Issues Advisory vs Unlicensed Pecado – Ashtree Block Ventures

• The SEC issued a warning against PECADO for unauthorized investment solicitation without necessary licenses.
• PECADO lacks registration as a corporation or partnership and Ashtree Consultancy, Inc. is not a registered Virtual Asset Service Provider.
• The SEC emphasizes the need for prior registration and authorization from relevant authorities, cautions against investing in unregistered entities, and underscores PECADO’s additional role as a Philippine stock broker, which also lacks proper registration.

The Securities and Exchange Commission (SEC) has issued another public advisory against entities that have engaged in the unauthorized solicitation of investments without the necessary license from the Commission. This time it sent an advisory against the interactive digital investment platform, P/E Capital Assetized Digital Offerings (PECADO).

(Read more: List of Licensed Virtual Currency Exchanges in the Philippines)

SEC vs. PECADO

The Commission cited the reports and information compiled, noting that PECADO, led by President Eliseo Jojo Prisno, is enticing the public to invest in the platform’s digital assets.

The SEC highlighted that the entity lacks registration with the Commission as a corporation or partnership. On the other hand, Ashtree Consultancy, Inc., an affiliate based in the Philippines, is not registered as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas and does not have the required Certificate of Authority as a Money Service Business. 

Accordingly, the Commission stressed that prior registration or authorization from the relevant authorities, including the SEC and the Bangko Sentral ng Pilipinas (BSP), is required to operate or conduct business in the Philippines. 

Consequently, it noted that PECADO also functions as a broker for Philippine stocks traded on the Philippine Stock Exchange, in addition to its primary function as a digital asset exchange which also requires another registration–which it was not.

The SEC pointed out that per Section 8 of the SRC, the sale or offering of securities in the Philippines requires proper registration with the Commission. Rule 3.1.17 of the 2015 SRC Rules defines public offering as any solicited or unsolicited offering of securities to the public, especially through information communications technology or the internet. Rule 26.3.5 further defines solicitation as seeking or asking for business or information related to the sale of securities.

Subsequently, based on the Commission’s database, PECADO, Ashtree Consultancy, Inc., and Ashtree Block Ventures LLC are not registered as corporations or partnerships and operate without the necessary licenses or authorities to solicit investments from the public.

The SEC cautions investors to be wary of these entities and to only invest in securities that are offered by licensed and registered investment professionals.

What is PECADO?

The advisory highlights that PECADO is entirely owned by Ashtree Block Ventures LLC, an Investment Advisory firm registered with the U.S. SEC. The platform is managed by its European subsidiary, Ashtree Block Ventures UAB, located in Lithuania, possessing a license for operating an electronic wallet and digital exchange specializing in virtual assets.

Moreover, according to its website, PECADO employs proprietary ledger technology supported by an in-house technology group led by its Chief Technology Officer (CTO) in the U.S. In addition, the firm highlights that its digital portal is officially managed by the Registered Investment Advisor (RIA) firm in the U.S., enabling global deployment. 

Further, the site noted that PECADO utilizes a robo-advisory algorithm to ensure users access sensible virtual assets aligned with their investment goals, risk tolerance, and investment objectives.

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This article is published on BitPinas: SEC Issues Advisory vs Unlicensed Pecado – Ashtree Block Ventures

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