The Securities and Exchange Commission (SEC) has ordered Melot’s Catering Services to stop its illegal solicitation of investments from the public until it secures the commission’s approval.

In a March 14 order, the SEC’s enforcement and investor protection department (EIPD) directed Melot’s Catering Services, its owners, and their agents to immediately cease and desist from selling and offering unregistered securities until they obtain the necessary approvals from the SEC.

In addition, they were ordered to stop their online presence related to the investment scheme covered by the order.

They were also prohibited from transacting any business involving funds in their depository banks and from transferring, disposing of, and conveying real and personal assets, including bank deposits, to preserve the assets for the benefit of investors.

The issuance of the cease-and-desist order (CDO) came after reports that Melot’s Catering Services had been enticing the public to become financiers or investors to supposedly support the expansion and renovation of its kitchen facilities.

Upon investigation, EIPD found that Melot’s Catering Services was not registered as a corporation or partnership with the SEC and, therefore, had not been issued any license to sell securities.

Under its scheme, Melot’s Catering Services offered and promoted investment contracts through social media, with a minimum investment of ₱50,000 and a promised income of 10-percent monthly interest for a period of six to 12 months.

Section 8 of the Securities Regulation Code (SRC) proscribes the selling, offering, or distribution of securities without a registration statement duly filed with and approved by the commission, while Section 28 requires all persons engaged in buying or selling securities to register with the SEC as a broker, dealer, or salesperson.

Additionally, Melot’s Catering Services’ unauthorized investment scheme also constitutes financial fraud, which is prohibited under the Financial Products and Services Consumer Protection Act (FCPA).

“[T]he act of Melot’s Catering Services through... its agents in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave injury or prejudice to the investing public,” the SEC order read.

It added that, “Unless restrained, the act of Melot’s Catering Services through... its agents in selling/offering unregistered securities constitutes a continuing violation of the provision of the SRC and the FCPA.”

As early as October 2025, the SEC had issued an advisory warning the public to stop investing in any scheme offered by Melot’s Catering Services.