SEC warns on unregistered frozen foods trader

THE Securities and Exchange Commission has warned the public not to invest in Davao-Prime Summit Frozen Products Trading as it is not authorized to solicit investment from the public.

In an advisory, the regulator found out that the entity has been soliciting investments in social media for its supposed frozen products business.

On its Facebook page, the entity stated that it is a “legit distributor and wholesaler of frozen dim sum and other frozen products.”

Investors are asked to place their investments online at an amount that ranges from P10,000 to P500,000 through its “Profit Share Program.”

The entity promises a 120% profit within the lock-in period of six months or 20% profit for every month.

It also said in a separate post that it was, supposedly, registered with the Davao office of the Department of Trade and Industry and has a mayoral permit from Davao City.

The commission also stated that it utilizes an investment contract as a security measure, a prominent measure “when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”

In its review, the commission stated that both entities are not authorized to solicit investments from the public. — Adrian H. Halili