Investment firm faces raps for violating securities law
The Department of Justice (DOJ) said on Thursday that it has found prima facie evidence with reasonable certainty of conviction against the Maria Francesca Tan (MFT) Group of Companies, including its officers and representatives, for multiple violations of the Securities Regulation Code and other laws.
Following the conclusion of its preliminary investigation, the DOJ said it specifically found prima facie evidence to charge Maria Francesca Tan, a.k.a. Mica Tan, and her associates with violations of Sections 8, 26, and 28 of Republic Act No. 8799.
However, the complaints against all respondents for violations of Republic Act 9160, or the Anti-Money Laundering Act, were dismissed.
The case stemmed from a complaint filed by the Securities and Exchange Commission (SEC) against the MFT Group and Foundry Ventures Inc. over alleged illegal investment schemes.
“The filing of the criminal case stemmed from complaints submitted by several investors who participated in the investment scheme of the MFT Group, which later transitioned to Foundry Ventures,” the SEC said in a statement in April.
According to the DOJ, the corporate watchdog discovered that MFT offered returns of between 12 percent and 18 percent to investors through the issuance of postdated checks reflecting a 1 percent to 1.5 percent monthly interest.
Not SEC registered
“Investors were given either a promissory note or borrower-lender agreement as proof of their investment. However, all of these were executed without proper documentation and registration with the SEC, making the same as illegal,” the DOJ said.
The SEC maintains that the MFT Group was never licensed to issue or sell securities.
Despite this, the company allegedly continued to offer high-yield investment opportunities to raise funds for what it claimed were “sure projects” of its subsidiaries.
