SEC orders shutdown of Melot’s Catering
The Securities and Exchange Commission (SEC) has issued a cease and desist order against Melot’s Catering Services for illegally soliciting investments from the public.
In an order dated March 14, the SEC’s enforcement and investor protection department directed the firm, its owner Mary Rose Reales Ceprino and its agents to immediately stop offering unregistered securities.
They were also ordered to take down online materials related to the scheme and cease any business transactions involving investor funds held in bank accounts.
The SEC further barred the group from transferring or disposing of assets, including bank deposits, to preserve funds for affected investors.
The action followed reports that the company had been inviting the public to invest in its supposed kitchen expansion and renovation projects.
Based on its investigation, the SEC found that Melot’s Catering was not registered as a corporation or partnership and had no license to sell securities.
The scheme involved offering investment contracts through social media, requiring a minimum placement of P50,000 with a promised return of 10 percent monthly over six to 12 months.
The commission said such offerings fall under securities as defined by Republic Act No. 8799, or the Securities Regulation Code (SRC), which requires prior registration and licensing.
Sections 8 and 28 of the SRC prohibit the sale of unregistered securities and require brokers, dealers and salespersons to be registered with the SEC.
