SEC says DoJ to file charges vs Modesto OPC for investment solicitations

THE SECURITIES and Exchange Commission (SEC) said the Department of Justice (DoJ) will file criminal charges against Modesto Cardano Market Cap Tr3ding Services OPC, as well as its officials, for allegedly soliciting investments from the public without proper registration.

In a statement on Wednesday, the SEC said the DoJ found sufficient evidence to charge the Modesto OPC for possible violations of the Securities Regulation Code (SRC) and the Cybercrime Prevention Act.

The SEC’s Enforcement and Investor Protection Department (EIPD) began monitoring Modesto OPC in March 2024 after the company failed to submit hard copies of its articles of incorporation. A subsequent investigation found that the firm was promoting investments through social media. Its schemes reportedly included multiple plans such as compensation profit and expert options, promising guaranteed monthly returns of 10% to investors.

“The certifications issued by the…SEC show that respondent [Modesto OPC] is not a registered issuer of securities. It is not licensed or authorized to publicly offer or sell securities nor does it have any pending application for registration of securities,” the DoJ resolution read.

“Investment solicitation from the public, like the one performed here, is a form of securities issuance classified as investment contracts. Accordingly, it must be registered with the SEC before offering the same to the public,” it added.

The company’s sole stockholder, director, and president were also cited for potential violations of Sections 8 and 28 of the SRC, in relation to Section 6 of the Cybercrime Prevention Act. Under Sections 8 and 28 of the SRC, entities offering securities to the public must first secure registration and a secondary license from the SEC.

Modesto OPC did not immediately respond to an e-mail seeking comment. — Alexandria Grace C. Magno