The Philippine Securities and Exchange Commission reported that the Department of Justice has indicted Maria Francesca Tan (MFT) Group of Companies, Inc., Foundry Ventures I, Inc., and their officers for allegedly soliciting investments from the public without authorization. State prosecutors found prima facie evidence to charge violations of the Securities Regulation Code relating to the offer and sale of unregistered securities, fraud or deceit, and failure to register persons engaged in buying or selling securities as brokers, dealers, salesmen, or associated persons. The case arose from an SEC complaint filed in April 2024 following investor complaints, involving an investment scheme that promised guaranteed returns of 12% to 18% and used promissory notes or borrower-lender agreements backed by 12 post-dated checks indicating monthly interest of 1% to 1.5%. Prosecutors characterized the arrangements as investment contracts and said the investment-taking activity resembled a Ponzi scheme, while also alleging misrepresentations in MFT Group’s audited financial statements for fiscal years 2018 to 2021, including unsupported dividend income; Isla Lipana & Co. (PwC Philippines) and its auditors Geraldine Hammond-Apostol and Ruth F. Blasco were implicated for allegedly aiding and colluding by validating the dividend revenue. The SEC had previously issued a cease and desist order in January 2024 and made it permanent in April 2024.

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