MANILA, Philippines — The Securities and Exchange Commission (SEC) has warned the public against investing in a restaurant franchise co-ownership scheme promising guaranteed monthly returns of up to 4 percent without requiring investors to manage a branch.
In an advisory, the regulator said Spoonful DVO Food House, also known as Casa Spoonful and SG Horizon Corp., lacked the registration or license needed to offer securities or solicit public investments.
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The SEC identified their representatives as Juan Gabriel Layman Reynante, Saudia Cassandra Gayo Barreda, Marjorie Robles Capisnon, Timothy John “TJ” Montesclaros, and Lily Yap Sarvida.
The SEC states that individuals conducted investment-taking activities through social media and in-person transactions.
The restaurant’s Facebook accounts, Casa Spoonful and SpoonfulDVO, mainly advertised food offerings.
Further examination, however, uncovered posts offering franchise co-ownership arrangements with passive income and guaranteed returns.
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The SEC also received complaints from people who said they contributed funds under an option that required no involvement in operating or managing a branch.
Promised monthly returns ranged from 2.5 percent for investments of P100,000 to P300,000, to 3 percent for P300,001 to P500,000.
Investments of P500,001 to P800,000 supposedly earned 3.5 percent monthly, while contributions of P800,001 to P1 million carried a promised 4 percent return.
The regulator said it established circumstances linking Spoonful DVO Food House to SG Horizon, including the latter’s use in restaurant-related transactions.
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The arrangements constitute “investment contracts,” the SEC said, because investors place money in a common enterprise expecting profits from the efforts of others.
The companies must register such securities under the Securities Regulation Code (SRC), and those who offer or sell them must obtain the appropriate registration or license.
The commission warned that promoters, recruiters, influencers, endorsers, and others soliciting investments could face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC.
It cited penalties of up to P5 million in fines, up to 21 years’ imprisonment, or both. /pai