Manila: The Securities and Exchange Commission (SEC) has revoked the certificate of incorporation of Dual Fuel Petroleum Corp. for illegally soliciting public investments. Along with this revocation, the SEC has mandated that the firm and its officials pay a fine of PHP2 million.

According to Philippines News Agency, the SEC cited Dual Fuel's Articles of Incorporation, which authorize the company to establish, operate, manage, and maintain gas stations as well as engage in franchising. However, the company is prohibited from soliciting investments from the public and issuing investment contracts, which it was found to have done.

The SEC's Enforcement and Investor Protection Department (EIPD) discovered that Dual Fuel was offering unlicensed investment contracts. The company reportedly collaborated with Legends Petroleum Corporation, a franchising company, to attract public investments by promising franchise co-ownership opportunities. Investors were required to make a minimum investment of PHP500,000, with a guarantee of quarterly profits for 20 years. The scheme involved offering 280 franchisee co-owner slots for eight gasoline stations.

The SEC noted that this scheme bore similarities to a Ponzi scheme, where new investments were used to pay existing investors, lacking legitimate business operations. The SEC order stated that since Dual Fuel Petroleum's primary purpose does not authorize it to engage in selling or offering securities to the public, such activities by the company are considered ultra vires acts, constituting serious misrepresentation.