The Securities and Exchange Commission (SEC) said it cancelled the incorporation papers of F2M Agri-Farm OPC for allegedly offering investments to the public without the prior approval and license.
It also ordered F2M Agri-Farm OPC to pay an administrative fine of P1 million, while its incorporator and nominee were directed to pay the same amount.
The SEC said that based on the investigation conducted by the Enforcement and Investor Protection Department (EIPD), the company and its related entities including F2M Tarlac City-Main Branch, F2M, F2M Paalaga System, Hog Raising Business, F2M Tuguegarao Branch, F2M Dagupan, F2M La Union Branch, F2M Lagawe, Ifugao, F2M-Solano Nueva Viz. Branch and F2M Tayug, engaged in selling securities in the nature of an investment contract without the necessary registration and approval from the SEC.
It said the company and its related entities enticed the public to buy one piglet for P5,000 with a promised return of P7,600 after three months, representing a 30-percent return on investment less 5 percent service charge, as advertised on their social media page.
The SEC said the modus operandi violated Section 44 of Republic Act (RA) No. 11232, or the Revised Corporation Code (RCC) and the Securities Regulation Code (SRC), and Section 11 of RA No. 11765
The RCC prohibits corporations from possessing or exercising powers beyond those conferred by law and provided under the articles of incorporation.
The SRC, on the other hand, prohibits the selling or offering of securities without a registration statement duly filed with and approved by the SEC. It also requires people engaged in the business of buying and selling securities to be registered with the SEC.