SEC warns public against Frutas Comida investment scheme
The Securities and Exchange Commission (SEC) has warned the public against investing in Frutas Comida Zamboanga, which has been offering guaranteed returns of 20 percent a month on social media.
In an advisory dated Nov 24, the SEC flagged the investment solicitation activities of Frutas Comida, as the group has not secured the necessary registration from the SEC, and the corresponding order of registration of securities and certificate of permit to offer and sell securities.
Posts on Frutas Comida’s Facebook page show that it has been encouraging investors to invest P5,000 to P50,000, in exchange for monthly returns of P6,000 to P60,000. Investments are collected through online banking channels and other digital payment platforms
Profits distributed to member-investors supposedly come from the sale of fruits and food tray packages, the SEC said.
The scheme involves the sale and offering of securities to the public in the form of investment contracts, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the SEC Enforcement and Investor Protection Department (EIPD).
Records show that Frutas Comida is not registered with the SEC as a corporation or partnership, nor is it authorized to solicit investments from the public, as it has not secured the necessary license to see securities or solicit investments as prescribed under Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC).
Article continues after this advertisement“The public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf allegedly of Frutas Comida Zamboanga. The public is further advised not to invest or to stop investing in the investment scheme being offered by any individuals claiming to represent said entity,” the SEC Enforcement and Investor Protection Department (EIPD) said.
