SEC warns on 2 unlicensed entities

THE SECURITIES and Exchange Commission (SEC) has warned about two entities taking investments from the public without prior registration.

In separate advisories, the regulator identified the investment-taking entities as Moca Farm Dairy, Inc. and Quick4Speed.

The commission said Moca Farm had been enticing the public online and through social media to invest in the company. It said the entity claims to specialize in producing high-quality dairy products from a “family-owned and -operated agricultural operation.”

The entity asks would-be investors to register on its website and invest in their preferred product initially ranging from P50 to P12,790, with a promise to earn P100 after five days or up to P51,600 after 120 days. They may also earn P50 per recruited user plus 7% daily income and another 4% dividend after multiple users.

Meanwhile, the SEC said Quick4Speed specializes in providing top-quality and high-end parts for motorcycles and cars. The entity claims to be a “master trader” in the foreign exchange market.

The regulator said Quick4Speed had been enticing the public to expand their brand and business by promising investment packages with a 10% return every month or 120% capital gains in one year. Investments range from P25,000 to P1 million.

The SEC said both entities are not authorized to solicit investments from the public. Under the Securities Regulation Code, companies are required to register with and secure a license from the commission.

The regulator also identified the entities as offering Ponzi schemes, which involve the promise or offer of profits that are sourced from the investments made by others.

Additionally, the Financial Products and Services Consumer Protection Act prohibits investment fraud, which is defined as any form of deceptive solicitation of investments from the public. — Adrian H. Halili