In an advisory posted on its website, the commission described Organico as a company with interests in organic farming, poultry and piggery, as well as telemarketing, and construction.
The SEC found Organico to be soliciting investments of at least 10 shares priced at P1,800 each from the public. In return, an investor is promised P450 per share every 15 days, for a total of P2,700 in three months.
The funds are allegedly used to support Organico’s businesses in organic farming and the piggery, among others.
The company was also found to offer a 90-day investment scheme where investors are promised a profit of P7,000 after three months, alongside their initial investment of P3,600. The money is supposedly used to raise a piglet.
“The public is hereby informed that Organico Agribusiness Ventures Corporation is not registered with the Commission as a corporation nor as a partnership under the Corporation Code of the Philippines and is not authorized to offer, solicit, sell or distribute any investment/securities,” the SEC said.
The country’s corporate regulator noted that soliciting investments require the company to secure a secondary license, as per Sections 8 and 12 of the Securities Regulation Code. These sections pertain to the registration of securities with the SEC.
Those found to be salesmen, brokers, dealers, or agents of Organico may also be prosecuted and held criminally liable by the commission. They face fines of up to P5 million, up to 21 years imprisonment, or both.
The SEC will also be submitting the names of people involved will Organico to the Bureau of Internal Revenue for the appropriate assessment of penalties and/or taxes. — Arra B. Francia