The owners, officers, and agents of the MFT Group of Companies, Inc. and Foundry Ventures I, Inc. should heed the subpoenas issued by the Department of Justice (DOJ) on the complaints filed against them by the Securities and Exchange Commission (SEC).
DOJ Senior Deputy State Prosecutor Richard Anthony D. Fadullon said: "Once the prosecutor issues the subpoenas, the respondents are advised to appear during the scheduled preliminary investigation hearing, secure copies of the complaints, and submit their counter-affidavits."
Earlier, DOJ Undersecretary Margarita Gutierrez had said the department had assigned a prosecutor to handle the preliminary investigation of the complaints set starting at 1:30 p.m. on May 14.
Neither Gutierrez nor Fadullan disclosed the name of the prosecutor assigned to conduct the preliminary investigation.
The SEC announced over the weekend that it filed last April 5 before the DOJ the criminal complaints against MFT Group of Companies and Foundry Ventures for violating Sections 8, 26, and 28 of Republic Act (RA) 8799 or the Securities Regulations Code (SRC) in relation to Section 6 of RA 10175, the Cybercrime Prevention Act of 2012.
The commission also accused MFT Group and Foundry Venture of violations of Section 54.1(c), in relation to Section 54.2 of the SRC and Section 177 of RA 11232, the Revised Corporation Code (RCC), and SRC Rule 68, in connection with the alleged material misrepresentations in their audited financial statements.
SEC said that the criminal charges stemmed from the complaints submitted by several investors who participated in the investment scheme of the MFT Group which later transitioned to Foundry Ventures.
It said the MFT Group allegedly promised Guaranteed returns ranging from 12 percent to 18 percent of the amount they invested which was considered as interest income.
It said this scheme was perpetuated through the issuance of post-dated checks reflecting a one percent to 1.5 percent monthly interest to interested investors who were given either a promissory note or borrower-lender agreement as proof of their investment.
Under Section 8 of the SRC, the SEC explained “securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.”
It added that Section 26.3 of the SRC states that it shall be “unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities, to engage in any act, transaction, practice, or course of business which operates or would operate as a fraud or deceit upon any person.”
Also, under Section 28 of the SRC, the SEC said “no person shall engage in the business of buying or selling securities in the country as a broker or dealer, or act as a salesman or an associated person of any broker or dealer unless registered as such with the Commission.”
The SEC said the MFT Group and its officers and directors were also found liable for 17 counts of misrepresentations in its 2018 to 2021 audited financial statements (AFS) by reflecting dividend income which has no basis.
Those named as respondents in the complaints are Maria Francesca Tan, Eduardo Tan, Florita Tan, Enrique Eduardo Tan, Charles Edward Tan, Christian Konstantin Agbayani, Mario dela Fuente, Philip Tan, Jenna Fuentes, Ronaldo Nery, Halmond Parker R. Ong, Chiqui T. Tan, Jose Donnie B. Montelibano, Romarico S. Ruiz, Arlene M. Navarro, Maria Beatriz Dolores R. Tomas, Mary Ruth A. Oquendo, Joane A. Cabaero, Thuy Nguyen, Roxanne G. Agbayani, Luis Gabriel R. Cancio Jr., Noel M. Olan, Joselito D. Hernandez Jr., Christian M. Olan, Tito T. Cosejo Jr., Christian De vera,. Jose Carlos R. Cancio, Mae Tan, Martin Choi, Reanne Po, Marta Gilda M. Poursabouri, Alan Madlangbayan, Mildred Madlangbayan, Jeruz Madlangbayan, and Rosanna Vidal.
Also named in the complaints was Isla Lipana and Co. which served as independent auditor of the MFT Group and Foundry Ventures from 2018 to 2021.