CA orders Mica Tan accounts frozen

MANILA, Philippines — The bank, investment, and insurance accounts of the Maria Francesca Tan (MFT) Group of Companies Inc.—currently dealing with a criminal complaint for allegedly being involved in an illegal investment scheme—were ordered frozen for 20 days by the Court of Appeals (CA).

The appellate court granted the petition of the Anti-Money Laundering Council (AMLC) to block the corporate entity’s access to the accounts, according to a May 13 resolution.

At the same time, the CA also ordered a probe of the accounts “upon finding probable cause that the group’s assets were related to an unlawful activity,” the Securities and Exchange Commission (SEC) said in a statement on Tuesday. The AMLC has 120 days to conduct the investigation.

The freeze order covers a total of 138 bank accounts, four securities accounts, and four insurance accounts linked to the MFT Group, Foundry Ventures I, Inc., Mondial Medical Technologies, Maria Francesca D. Tan, Christian Konstantin, Roxanne G. Agbayani, Enrique Eduardo D. Tan, Charles Edward D. Tan, and Luis Gabriel R. Cancio Jr., among other officials.

The Anti-Money Laundering Act allows the AMLC to examine deposit and investment accounts should there be a probable cause these are used for illegal activities.

The MFT Group, to recall, has been in hot water for allegedly soliciting investments from the public without the requisite licenses from the regulator. Guilty parties may face a maximum penalty of P5 million or imprisonment of 21 years or both.

The SEC issued a cease and desist order in April against the group and its officers and directors, directing them to halt solicitation of investments.

Big promise

According to the SEC, the MFT Group reportedly promised investors guaranteed returns ranging from 12 percent to 18 percent of the amount they invested.

The scheme was reportedly done through the issuance of postdated checks reflecting a 1-percent to 1.5-percent monthly interest to investors, who were given either a promissory note or borrower-lender agreement as proof of their investment.

The corporate watchdog received complaints the MFT Group had been falling behind on their payments for years.

The SEC also flagged the entity for not recording the money received from investors in its books of accounts as part of its liabilities or share capital.

Earlier, the SEC filed a criminal complaint before the Department of Justice against Tan and her companies. The group previously said it would cooperate with the regulator in resolving the matter. INQ