SEC Orders Bogus Investment Firms to Cease Operations

MANILA, Philippines — The Securities and Exchange Commission (SEC) has issued cease and desist orders against investment firms for violating laws against unauthorized solicitation from the public. The SEC yesterday said it has ordered Nego Food Solution Corp. and Uptrade Alliance to stop their respective businesses that lure unsuspecting investors looking for guaranteed returns. The SEC, through its Enforcement and Investor Protection Department (EIPD), also ordered both parties to stop moving any funds in the deposit accounts used for their investment schemes. According to EIPD’s investigation, both Nego Food Solution and Uptrade Alliance were selling unregistered securities in the form of investment contracts to the public. Uptrade Alliance is also operating without any registration with the SEC as a corporation or partnership. Uptrade Alliance deceives investors into placing amounts between P300 and P1,000. The investors are promised a guaranteed return of 12 percent in five days and 60 percent in 15 days. The seller of unauthorized securities also offers referral commissions of up to five percent based on the capital placed by individuals referred by an investor. The EIPD also found out that Uptrade Alliance is running an online platform that handles crypto trading activities, also without authority. Nego Food Solution, on the other hand, sells co-ownership deals on food outlets in exchange for P849,000, promising quarterly income to investors. The SEC issued the cease and desist orders against Nego Food Solution and Uptrade Alliance in violation of the Securities Regulation Code. Under Section 8 of the law, it is prohibited to sell or distribute securities without proper registration filed with the SEC. Likewise, Section 28 requires all persons engaged in buying or selling securities to register with the SEC. They have to be a broker, dealer or salesperson to transact securities. Further, the order against Nego Food Solution covers certain individuals named Noel Andres, Mark Marquez and Jocelyn Manzanero. The SEC also said the investment schemes developed by the two parties count as fraudulent acts punishable under the Financial Products and Services Consumer Protection Act.