The Securities and Exchange Commission filed criminal complaints against Organico Agribusiness Ventures Corp. with the Department of Justice for violating the rules of the Securities Regulation Code.
The SEC on September 10 filed the complaints against Organico, along with president Cerrone Roial Posas, corporate finance officer Marve Subere Posas, corporate secretary Anthony Butaslac and board directors Renato Subong and Karen Maasin for publicly selling unregistered securities in the form of investment contracts and engaging in fraudulent transactions in violation of the SRC.
The SEC also charged agents and representatives Kathleen Hortesano, Rochelle Camacho and Annielyn Hilotin for acting as salesmen of Organico by directly offering and selling securities to the investing public.
The SEC said Organico’s scheme involved assurances that the money invested to the company amounting to P3,600 would shortly become P6,000 after 90 days, or a return of 66.67 percent without having to do anything other than invest and receive the promised payment from the company.
Organico has been operating in Ormoc City, Leyte; Toril, Davao City; Cebu City and Quezon City. It uses social media and networking and video-sharing websites to offer the investment contracts to the public.
The SEC in a public advisory issued on May 21 said Organico was not authorized to offer, sell or distribute any investment securities for lack of a secondary license.
It issued a cease-and-desist order on May 28 against the company as well as its directors, officers agents and representatives. The regulator revoked the company’s certificate of registration for serious misrepresentation to the prejudice or damage to the general public.
Despite these actions, the SEC said Oganico continued to operate its investment scheme.
The SRC provides that no securities should be sold or offered for sale within the Philippines unless they were duly registered with the SEC.