The unscrupulous among us have latched themselves unto the sustainable bandwagon to attract unwitting investors and have been somewhat successful enough for the regulator, the Securities and Exchange Commission (SEC), to issue a warning.
The SEC has let it be known that Moca Farm or Moca Farm Dairy Inc. has styled itself as an enterprise with a heart for the environment which happens to be family-owned but with an online trading platform at the same time.
But the catch here, the SEC said, is that the enterprise does not have the license to do what it does with the online trading platform.
Based on reports and information gathered by the SEC, Moca Farm ostensibly specializes in producing high-quality dairy products out of a family-owned and operated agricultural operation.
It also claims the entire farm is dedicated to sustainable and responsible farming practices, ensuring that its milk and other products are of the highest quality and taste.
An investor is asked to register in the company’s online trading platform, invest only P50 at its condensed milk unit, for instance, and double his money in five days.
The fraud offers five levels of investments starting with P400 up to P12,790, all promising the doubling of one’s investments in only 120 days.
The SEC said the enterprise clearly offers a kind of security that, for all intents and purposes, is a contract where there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
According to the SEC, this feature is prominent in the scheme Moca Farm offers.
As such, the Securities Regulation Code requires such offer and sale of securities be registered with the SEC and the entity and its agents have the appropriate registration and license to sell such securities to the public.
“The transactions entered by Moca Farm or in Moca Farm Dairy Inc. through their online trading platform are considered investment contracts and must be registered with the Commission,” the agency said.
Moca Farm’s investment offer has the characteristics of a Ponzi scheme, promising exorbitant rates of return with little to no risk at all to the investors, the SEC noted.
Moca Farm is not a registered entityy, either as a corporation or a partnership, it added.
“Hence, the public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Moca Farm or in Moca Farm Dairy Inc. and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the SEC said.
