[T]here is wisdom in the issuance and continuance of the CDO against petitioner,” the CA said in a 17-page decision dated July 19.

The SEC issued the CDO on July 16, 2019, after finding that Planpromatrix offered and sold to the public securities in the form of investment contracts under the guise of an electronic loading business, without securing the requisite license from the corporate watchdog.

The investment scheme involved the solicitation of P600 to P1,850 of investments from the public, from which one can supposedly earn through an e-loading business, data entry job, and advertising package.

The CA took note of the implied admission made by Planpromatrix president and CEO George Naval, who did not dispute the contents of the advisory issued by the SEC in February 2018.

“There can be no debate on the authority of the SEC to issue the subject CDO, provided that the conditions therefor, i.e., that fraud has been perpetrated and grave injury is likely to be caused to the public, are extant,” the CA pointed out.

The appellate court ruled that the SEC did not violate due process with the issuance of the CDO as saying the order was not permanent or final and could have been refuted by evidence.

“Petitioner had the opportunity to cause the recall of the CDO; it availed of the opportunity; and with that, it was accorded due process,” the CA noted.

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