The Securities and Exchange Commission (SEC) has issued a cease-and-desist order (CDO) against entities involved in the unauthorized use of the corporate identity of Tekwang Lending Corp. and its online lending platform, Tekcash, to facilitate illegal lending activities.
The SEC Financing and Lending Companies Department (FinLenD), in an order dated Oct. 15, directed persons or entities operating the Facebook page “Tekcash Online Loan Victims”, as well as their owners, representatives, and all persons acting on their behalf, to immediately cease and desist from engaging in, promoting and facilitating, directly or indirectly, any lending transaction without the necessary authority from the Commission.
“Respondents are using the identity of a duly registered lending company through unauthorized digital channels; creating the appearance that they are authorized to assist or participate in lending transactions; and exposing financial consumers to deception by persons, whose identities and regulatory standing have not been established,” the order states.
The order also covers the operators of the Facebook account “Tekcash Loan Lending”, and the email address tekcashloanmanagement@gmail.com.
They were prohibited from claiming, expressly or impliedly, that they are Tekwang or Tekcash, or are owned, operated, or connected with the SEC-registered lending company and online lending platform.
The entities were also directed to stop operating, maintaining, and promoting the subject Facebook group and account, and email address, the SEC said in a press release Nov. 9.
The issuance of the CDO stemmed from a report by Tekwang Lending Corp. regarding the Facebook group and the associated account which contained testimonials from individuals, who have obtained loan assistance from the fake email address.
Tekwang Lending Corp., which denied ownership and operation of the Facebook group and account, and email address covered by the CDO, said it has received complaints and requests for assistance from borrowers and members affected by the unauthorized activities of the reported accounts.
Investigation by FinLenD showed that the Facebook group, account and email address carrying the name Tekwang do not have authority from the Commission to engage in lending activities.
They are also not the authorized representatives, agents, third-party providers or digital channels of the lending firm.
Republic Act 9474, or the Lending Company Regulation Act of 2007, requires companies to secure authority from the Commission before engaging in lending transactions. ||
