The Department of Justice affirmed the findings of Securities and Exchange Commission against Organico Agribusiness Ventures Corp. which allegedly engaged in an unauthorized sale of investment securities to the public.
The SEC said in a statement the DOJ recommended the filing of criminal charges against Organico and its officers for violations of Sections 8, 26.3 and 28 of Republic Act No. 8799, or the Securities Regulation Code in relation to Section 6 of Republic Act No. 10175 or the Cybercrime Prevention Act of 2012.
“(T)he business operations carried out by respondent Organico is in the form of a Ponzi scheme whereby purported returns to existing investors are culled from funds contributed by new investors,” the DOJ resolution read.
“It is not an investment strategy but a gullibility scheme and which only works as long as there is an increasing number of new investors joining,” it said.