MANILA, Philippines — The Securities and Exchange Commission (SEC) upheld its cease and desist order against MFT Group led by CEO Maria Francesca “Mica” Tan concerning its alleged illegal sale of investment contracts to the public.
In a statement on Wednesday, the corporate watchdog made permanent the order against MFT Group, Foundry Ventures, and their officers and agents.
The commission en banc denied for lack of merit their joint motion to lift the order.
MFT Group and Foundry Ventures argued that the loan agreements they had issued were not securities in the form of an investment contract.
READ: SEC orders Mica Tan’s MFT Group to stop illegal sale of investments
However, the SEC stressed that the said securities were not registered with the regulator, thus making the transactions still an unauthorized investment scheme.
Order made permanent
“The fact that the investing public continues to be exposed to the risk of being prejudiced and/or defrauded by the unauthorized sale/offer of unregistered securities by the [MFT Group] militates against the automatic lifting of the [order],” the commission said.
The SEC in January ordered Tan’s company to stop illegally selling investment contracts after receiving complaints that they were falling behind on their payments for years.
READ: Mica Tan firm vows to cooperate with SEC after cease order
The securities were reportedly sold during public events and were essentially borrower-lender arrangements that became promissory notes.
The companies were barred from transacting with depository banks to protect investors’ assets, according to the SEC.
Tan had vowed to cooperate with the commission, saying that they had a “strong track record of compliance” with securities regulations.
Tan gained recognition for expanding into the food business through Saladstop! and Mimi & Bros restaurant. She also ventured into healthcare via Mondial Kidney Care Center.