Maria Francesca “Mica” Tan —MFT GROUP PHOTO
The embattled MFT Group led by CEO Maria Francesca “Mica” Tan promised to cooperate with the Securities and Exchange Commission (SEC) after the regulator ordered the company to halt an illegal sale of investment contracts to the public.
“MFT Group takes all regulatory matters seriously and is committed to upholding the highest standards of legal and ethical conduct. We are confident that once we have reviewed the specifics of the SEC’s concerns, we will be able to address them promptly and responsibly,” the MFT Group said in a statement on Friday.
“In the meantime, we would like to emphasize that MFT Group has a strong track record of compliance with securities regulations. We operate with transparency and integrity, and we are committed to working cooperatively with the SEC to resolve this matter,” it added.
‘Unlawful solicitation’
On Thursday, the SEC directed the MFT Group and Foundry Ventures to “immediately cease and desist from further engaging in the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.”
The companies were also barred from further transacting with depository banks to protect the assets of investors.
READ: SEC orders Mica Tan’s MFT Group to stop illegal sale of investments
The issue stemmed from several complaints filed before the SEC’s enforcement and investor protection department alleging that Tan’s group had been falling behind on payments for years now.
Tan, who was named in the SEC order alongside the other directors and officers of the firm, became a celebrity of sorts in business circles after MFT ventured into various businesses including Saladstop! Vietnam, Mondial Kidney Care Center and Mimi & Bros restaurant.
Promissory notes
According to the regulator, the securities—sold via public events—were in the form of borrower-lender agreements that later became promissory notes.
The firm allegedly promised these investors a guaranteed return of 12 percent to 18 percent per year, issuing postdated checks for amounts that would later “not be paid.”
“We are confident that, once we have had the opportunity to fully review the details of the SEC’s order, we will be able to demonstrate our commitment to responsible business practices and regulatory compliance,” MFT Group added.