A clandestine operation has been shut down. The Securities and Exchange Commission (SEC) delivered a decisive order, permanently halting the financing activities of Digido Finance Corp. after evidence surfaced revealing the company brazenly continued its business despite losing its legal right to operate.
The SEC’s investigation, culminating in an order dated February 18th, uncovered a pattern of deliberate defiance. Digido pressed forward with lending practices even after its corporate registration and operating license were revoked the previous year, a clear violation of financial regulations.
Specifically, Digido was found in violation of key provisions within the Financing Company Act, demonstrating a disregard for established legal boundaries. The SEC’s findings highlighted a blatant disregard for the rules governing financial institutions within the country.
A substantial administrative penalty of P600,000 was levied against Digido, distributed between the company itself and its five key officers. This financial consequence underscores the severity of the infractions committed.
Digido attempted to argue the initial order wasn’t immediately enforceable, claiming it was still subject to appeal. However, the SEC firmly rejected this claim, citing procedural rules that classify revocation orders as immediately executory.
The evidence painted a stark picture: Digido wasn’t simply winding down operations. The company continued to actively process loan applications, distribute funds, and manage existing loan accounts, effectively operating as if the revocation never occurred.
Each loan extended after the revocation was deemed a separate and distinct illegal act, solidifying the SEC’s case. The commission emphasized that the violation wasn’t merely theoretical, but a tangible consequence of continued unauthorized lending.
The SEC’s investigation further revealed a complex network designed to circumvent the revocation. Digido was found to be channeling loan servicing and collections through Fingertip Finance Corp., a subsidiary of a Singapore-based firm.
This arrangement wasn’t viewed as simple administrative continuation. The SEC determined that ongoing collection efforts, facilitated through structured payment systems and borrower communication, were integral to maintaining the core of Digido’s illicit financing operation.
By directing borrowers to remit payments to Fingertip, Digido effectively sustained its business model despite the SEC’s explicit withdrawal of its authority. This deliberate maneuver highlighted the company’s intent to operate outside the bounds of the law.
Attempts to secure a response from Digido Finance Corp. were unsuccessful, leaving unanswered questions about the motivations behind their actions and the extent of the operation’s reach.
