SEC files criminal complaint against Mica Tan companies, 30 officers over alleged illegal investment schemes
The Securities and Exchange Commission (SEC) has lodged a criminal complaint with the Department of Justice (DOJ) against CEO Maria Francesca Tan and her companies for their involvement in what the SEC alleges are illegal investment schemes.
The complaint, filed on Sunday, names MFT Group of Companies Inc., Foundry Ventures I Inc., and at least 30 other officers for violating the Securities Regulation Code (SRC) under Republic Act No. 8799.
According to the SEC, the complaint was prompted by multiple investor complaints about the investment scheme operated by the MFT Group, which later evolved into Foundry Ventures.
The SEC had previously issued a cease and desist order against Tan’s companies after receiving reports that they were failing to fulfill their payment obligations to investors over an extended period of time. The order was made permanent on April 1.
Despite the allegations, MFT Group has expressed its willingness to cooperate with the commission and has claimed a history of compliance with securities regulations.
Tan, known for her ventures in the food and healthcare industries, is accused of promising investors returns ranging from 12 percent to 18 percent on their investments. The SEC notes that these investments were not registered with the commission, making them unauthorized under the SRC.
Additionally, the SEC found MFT Group and its officers and directors liable for misrepresentation in their audited financial statements from 2018 to 2021, specifically citing the inclusion of dividend income without a valid basis.
Investors, who were promised guaranteed returns through the investment scheme, were reportedly provided with postdated checks reflecting monthly interest rates, but the SEC asserts that these securities were not approved for distribution in the Philippines.
Violators of the SRC could face fines of up to P5 million or imprisonment for a maximum of 21 years, or both.
The SEC’s complaint also implicates the company’s external auditor, Isla Lipana & Co, for vouching for MFT Group’s financial health based on allegedly misleading information in the company’s financial statements.
The Inquirer has reached out to MFT Group for comment but has not received a response as of press time.
