MANILA, Philippines — The Securities and Exchange Commission (SEC) ordered two entities, Sophia Francisco Holding OPC and BeastnessAllDay Corp. to stop soliciting investments from the public as they do not have the proper licenses.
It also ordered the Sophia Francisco Group to cease its internet presence relating to its investment scheme, as well as from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of the investors.
The Sophia Francisco Group has been actively offering or selling unregistered securities in the form of investment ccontracts to the public. It offered investments worth as low as P500 with guaranteed earnings of up to three percent daily for 20 days. It also gave a five percent referral fee to those who can invite new investors into the group.
While the Sophia Francisco Group is registered as a one-person corporation with the SEC, it has not been issued a secondary license that will authorize it to solicit investments from the public, nor does the group have a pending application for such license.
BeastnessAllDay, on the other hand, promises 10 percent to 12 percent monthly returns after a five-month period to investors who invest P50,000 in the group. The guaranteed returns will supposedly come from its investments, sale of gadgets, real and personal properties, luxury vehicles, shoes, and other apparels.
“The products and business are, however, all a sham, and are utilized to entice the public to part with their hard-earned money,” the EIPD said.
The SEC ruled that investment schemes of BeastnessAllDay and Sophia Francisco Group both involve the sale and offer of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.
Section 8 of Republic Act 8799 or The Securities Regulation Code (src) provides that securities shall not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the SEC.
“[I]t is clear that BeastnessAllDay’s business model, which promises high return of investments, is not sustainable and can only be carried out as long as new investors continue to come in,” the SEC En Banc said in its order against BeastnessAllDay.
Meanwhile, the SEC said in its order against the Sophia Francisco Group: “[T]he act of Sophia Francisco Group in selling/offering securities sans the requisite license from the commission; operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public.”