THE Securities and Exchange Commission (SEC) has cancelled Bill Ford VIP Trading, Inc.’s registration as a corporation for offering investment schemes without the required secondary license from the commission.
“The [commission] has canceled the corporate registration of Bill Ford VIP Trading, Inc. for engaging in unauthorized investment activities resembling a Ponzi scheme,” the SEC said in a statement on Thursday.
It said the cancelation order was issued on April 14 by the SEC’s Enforcement and Investor Protection Department (EIPD).
The entity is said to be headed by a certain Billy Ford Delos Santos Andrada.
Three of its incorporators, Trixie Faith M. Pena, Andrew James T. Balero, and Jethro John G. Reyes, also put fake addresses in the company’s Articles of Incorporation.
Bill Ford VIP Trading did not address the advisory published by the corporate watchdog in January.
The commission’s EIPD also issued a show-cause order against the company in February.
Bill Ford Trading was selling pigs worth P2,500 each with a guaranteed return of P4,375 after three months.
Those who would invest in five pigs for P12,500 were promised a return of P21,875 in the same period, while those who opted to invest in 40 pigs would earn P175,000 after three months.
Its investment programs are also said to resemble a Ponzi scheme.
“The EIPD further noted that Bill Ford Trading’s main strategy is to earn from the recruitment of new members or investors, with the piggery business used as a front for its scheme,” the SEC reported.
While Bill Ford Trading is registered with the SEC, it is not allowed to collect investments from the public as it does not have the necessary license.
“The company’s activities also constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public,” the commission said. — Keren Concepcion G. Valmonte