The Securities and Exchange Commission (SEC) has ordered AI Quest Trading and its President and CEO, Erica Aguilar, to immediately halt all unauthorized investment-taking activities. Issued on September 15, 2026, the Cease and Desist Order (CDO Case No. 2026-0014) targets the entity and its operators for soliciting public capital under the guise of an artificial intelligence-powered stock trading platform without the required licenses. (Read more: SEC Investment Watchlist Philippines: Advisories, Cease-and-Desist Orders, and Flagged Schemes)
Unrealistic Yields Under an AI Banner
AI Quest Trading solicited investors through its website (aiquestofficial.com) and social media channels, promising guaranteed returns through alleged AI-assisted trading. The scheme enticed investors to register and select from three distinct investment packages:
- Advantage Plan: 30% return within 7 days (minimum investment of ₱500; maximum of ₱5,000).
- Proficient Plan: 70% return within 15 days (minimum investment of ₱1,000; maximum of ₱50,000).
- Expert Plan: 150% return within 30 days (minimum investment of ₱5,000; maximum of ₱1,000,000).
Legal Violations and the Howey Test
Investigations by the SEC’s Enforcement and Investor Protection Department (EIPD), backed by official certifications from the Company Registration and Monitoring Department (CRMD), Markets and Securities Regulation Department (MSRD), and Corporate Governance and Finance Department (CGFD), confirmed that AI Quest Trading is not registered as a corporation or partnership, nor does it hold any license to sell or offer securities to the public.
The Commission determined that the scheme satisfies all criteria of an investment contract under the Howey Test, a standard established by Supreme Court jurisprudence. Investors were solicited to pool funds into a enterprise with the expectation of earning passive profits derived entirely from the efforts of others. Consequently, offering these unregistered contracts violates Sections 8.1, 26, and 28 of the Securities Regulation Code (SRC) and constitutes financial fraud under Republic Act No. 11765 (Financial Products and Services Consumer Protection Act).
Asset Freeze and Penalties for Promoters
The SEC order commands AI Quest Trading to immediately shut down its online presence, including its official website and social media channels. Additionally, the entity, Aguilar, and their agents are prohibited from transacting or transferring funds in bank accounts, as well as disposing of any real or personal assets, to preserve remaining capital for affected investors.
The regulator warned that any brokers, salesmen, recruiters, uplines, or social media influencers who promote or solicit investments for AI Quest Trading face criminal liability, which carries penalties of up to a ₱5,000,000 fine, 21 years of imprisonment, or both.
This article is published on BitPinas: SEC Issues Cease and Desist Order Against AI Quest Trading over Unregistered Investment Scheme
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