Lucky South 99’s Corporate Registration Revoked by SEC

The Securities and Exchange Commission (SEC) announced on Wednesday that it has revoked the corporate registration of Lucky South 99 Corp. for violating its articles of incorporation by operating a Philippine Offshore Gaming Operator (POGO) facility in Porac, Pampanga.

According to an order dated July 30, 2024, the SEC’s Enforcement and Investor Protection Department (EIPD) revoked the company’s certificate of incorporation for violating Section 44 of Republic Act No. 11232, also known as the Revised Corporation Code of the Philippines (RCC), in conjunction with Section 179 (j) of the RCC.

Section 44 of the RCC specifies that “no corporation shall possess or exercise corporate powers other than those conferred by the law or its articles of incorporation, and those necessary or incidental to the exercise of such powers.” The SEC found that Lucky South 99 Corp., originally incorporated in 2019 as Lucky South 99 Outsourcing Inc., had strayed from its intended business purposes.

Initially, the company was organized to engage in business process outsourcing and real estate activities. However, on February 7, 2024, the company amended its articles of incorporation, changing its name to Lucky South 99 Corp. and shifting its primary purpose to “the business of gaming, entertainment, and content streaming of live gaming action, along with the operation of electronic games at gaming sites.” Its secondary purpose was to develop a hotel with internet shops and gaming facilities.

An investigation by the EIPD revealed that Lucky South 99 had been listed as an Offshore Gaming Licensee by the Philippine Amusement and Gaming Corporation (PAGCOR) as early as August 8, 2023. The SEC emphasized that the company was not authorized to operate as a POGO, and its activities were deemed “ultra vires” (beyond the powers) and constituted serious misrepresentation.

The Department of the Interior and Local Government (DILG) conducted a raid on Lucky South 99’s office in September 2022 for operating without a license and allegedly being involved in the trafficking of Chinese nationals. The DILG subsequently shut down the POGO facility in Pampanga.

The SEC underscored that Lucky South 99, as a juridical entity, is only permitted to exercise powers inherent to its corporate existence as outlined in the RCC and its articles of incorporation. The SEC stated that the company’s actions, which misled the public into believing it was authorized to operate as a POGO, constituted serious misrepresentation.

Lucky South 99 operated the POGO hub in Porac, Pampanga, which was raided in June. One of its incorporators, Cassandra Li Ong, was recently apprehended overseas and returned to the Philippines, along with Shiela Guo, the sister of former Bamban, Tarlac mayor Alice Guo. Money laundering complaints have been filed against Ong, the Guos, and several others related to the POGO hubs in Bamban and Porac.