The Securities and Exchange Commission (SEC) has ordered the operators of several online accounts impersonating Tekwang Lending Corp. to stop offering unauthorized lending services.
In an order dated Oct. 15, the SEC issued a cease-and-desist order (CDO) against the operators of the Facebook group “Tekcash Online Loan Victims,” the Facebook account “Tekcash Loan Lending,” and the email address tekcashloanmanagement\@gmail.com.
The order directs the operators, their representatives, and anyone acting on their behalf to immediately stop engaging in, promoting, or facilitating lending transactions without SEC authorization.
The SEC also prohibited them from claiming that they are Tekwang Lending or its online lending platform, Tekcash, or that they are owned, operated, or affiliated with the registered lending company.
The case stemmed from a report filed by Tekwang Lending Corp., which denied operating or having any connection with the Facebook group, account, and email address.
The company also reported receiving complaints and requests for assistance from borrowers and other individuals affected by the activities of the unauthorized accounts.
An investigation by the SEC found that the Facebook group, account, and email address had no SEC authority to engage in lending activities. They were also not authorized representatives, agents, third-party service providers, or digital channels of Tekwang Lending.
The SEC said the unauthorized use of the company’s identity could expose borrowers to fraudulent lending transactions.
“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 read.
Under Republic Act No. 9474, or the Lending Company Regulation Act of 2007, companies must secure SEC authority before engaging in lending transactions.
