The Securities and Exchange Commission is asking the public to stop investing in the scheme being offered by Ground Zero Poultry Agricultural Corporation and its representatives as this has the characteristics of a Ponzi scam.

Based on reports and information gathered by the Commission, individuals or group of persons claiming to represent Ground Zero Poultry Agricultural Corporation is enticing the public through social media to invest in the company.

The SEC said it found that Ground Zero Poultry Agricultural Corporation “is enticing the public to participate in its poultry farm pursuits. An investor may opt to invest with as low as P20,000 with 36 percent up to 80 percent guaranteed Return On Investment (ROI) for the lock-in period of 6 months or 12 months.”

The Commission noted that, an “investment contract” which is a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others which is prominent in the scheme of Ground Zero Poultry Agricultural Corporation.”

“As such, the Securities Regulation Code (SRC) requires that said offer and sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration or license to sell such securities to the public,” said the SEC.

It said that, “Records of the Commission show that Ground Zero Poultry Agricultural Corporation is registered with the Commission on November 29, 2021. However, such registration merely grants juridical personality to the corporation but does not authorize them to issue, sell or offer for sale securities to the public nor undertake business activities requiring a secondary license.”

It added that, SEC records also show that the firm is not authorized to solicit investments from the public as it did not secure prior registration or license to solicit investment from the Commission as prescribed by the Securities Regulation Code.

The SEC said its investigation has showed that Ground Zero Poultry Agricultural Corporation is connected with Hustlin Bullies and Ground Zero Poultry and that it had also issued an advisory against the said two firms in September 14, 2021 and February 8, 2022, respectively.

“The scheme employed by Ground Zero Poultry Agricultural Corporation, has the characteristics of a ‘Ponzi Scheme’ where monies from new investors are used in paying ‘fake profits’ to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” said the SEC.

It stressed that, “The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme’ which is fraudulent and unsustainable, is NOT a registrable security.” The SEC said it will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.

It also warned “those who act as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abetters and enablers of Ground Zero Poultry Agricultural Corporation, in selling or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable.”

The SRC allows the imposition of a penalty of up to P5 milion or imprisonment of 21 years or both against those convicted of this crime.