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Firm loses license over Ponzi scheme

Republika

A business establishment found soliciting investments from the public through a Ponzi scheme had its corporate registration cancelled by the Securities and Exchange Commission (SEC).


Eco Hatchery and Trading Corporation has been offering and soliciting investments without the necessary license from SEC, prompting the commission’s Enforcement and Investor Protection Department (EIPD) to issue an order cancelling the company’s registration.


The SEC said Eco Hatchery committed an ultra vires act under Section 44 of Republic Act No. 11232, or the Revised Corporation Code of the Philippines.


According to the order, 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, a ground for the revocation of a corporation’s certificate of registration under Presidential Decree No. 902-A.


The SEC has warned the public against investing in Eco Hatchery as early as Feb. 3, 2020 through an advisory. The company did not react to nor refute the advisory.


Eco Hatchery entices the public to invest with the promise of earning 15 percent every 15 days in a span of four months. A capital of P500,000 would earn P75,000 every 15 days, or a total of P1.1 million after four months, inclusive of the initial investment.


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