SEC warns vs R2R Finance scheme
The Securities and Exchange Commission (SEC) has warned the public against investing in offers being promoted by R2R Agri Industry Co. and R2R Finance, saying the group is not authorized to solicit investments from the public.
In an advisory, the SEC said reports and information gathered by the commission showed that individuals led by Renz Reyton Franco had been enticing investors through social media platforms to place money in the venture.
Franco allegedly introduced himself as the “hedge fund manager” of R2R Finance and claimed experience as an agripreneur, e-commerce manager and forex and cryptocurrency trader.
According to the regulator, the group claimed to generate profits through three business pillars: agribusiness through its coffee farm venture R2R Agribrew, e-commerce operations using a dropshipping model and forex and cryptocurrency trading using purported hedge fund strategies.
The SEC said online posts showed the group offering investment packages that promised returns within short periods, including plans that advertised profits of up to 80 percent in 28 days and 65-percent returns in as little as 10 days.
The regulator said such arrangements appear to possess the characteristics of an “investment contract,” which under the Securities Regulation Code involves placing money in a common enterprise with an expectation of profits derived from the efforts of others.
As such, the offer and sale of these securities should first be registered with the commission and the sellers must hold the proper licenses.
The SEC stressed that it has not secured the registration and licenses required under the law.
