SEC orders shutdown of EF Easy Franchise
The Securities and Exchange Commission (SEC) has ordered EF Easy Franchise Technological Ventures Inc. to stop selling unregistered securities via franchise-related investment schemes.
In a cease and desist order, the SEC Enforcement and Investor Protection Department directed EF Easy Franchise to immediately stop offering or selling unregistered securities, including investment contracts, profit-sharing agreements, franchise investment schemes, partnership deals and similar arrangements.
The order also covers several individuals linked to the company: Jose Anton Ojeda, Charmaine Isabel Lim, Gianpaolo Acosta, Karla Dela Cruz, Angelica Carlos, Rene Ledesma Jr., Jose Magsaysay Jr., Emerson Tan and Angela Kirsten Villaluz, as well as Sunspark Holdings Inc., their officers, incorporators, agents, promoters and representatives.
“They were likewise prohibited from transacting any business involving funds covered by the order in their depository banks, and from transferring or disposing of all assets and properties under their control to preserve the assets for the benefit of the investors,” the SEC said.
The regulator found that EF Easy Franchise had offered securities through its “Investment Starter” program and similar franchise partnership agreements.
Under these arrangements, the company allegedly encouraged investors, particularly overseas Filipino workers (OFWs), to participate in franchise businesses through pooled ownership arrangements. This was while promising passive income, profit-sharing, high returns and hands-off management.
“[T]he continued offer and solicitation activities of EF Easy Franchise pose a serious risk of loss, damage, irreparable injury and prejudice to the investing public, particularly to OFWs and other individuals who were allegedly enticed to invest their hard-earned money through promises of passive income and guaranteed returns,” the order read.
Magsaysay, one of the individuals named in the cease and desist order, denied having any operational or financial role in EF Easy Franchise.
In a statement, he said he agreed several years ago to be listed as one of the directors because he believed in its mission of helping Filipino entrepreneurs.
“I never put money into the company. I was not involved in the management of its funds, and I never received dividends, salaries or profits from it,” Magsaysay said.
He added that he was not involved in the company’s day-to-day operations, including any decision to solicit investments from the public.
