The Court of Appeals has ordered the freezing of the bank, investment and insurance accounts of the Maria Francesca Tan Group of Companies upon finding probable cause its assets were linked to unlawful activity.
In a resolution dated 13 May, the CA granted the petition of the Anti-Money Laundering Council freezing the MFT Group’s bank, securities and insurance accounts for 20 days.
The freeze order extends over 138 bank accounts, four securities accounts, and four insurance accounts of the MFT Group, Foundry Ventures I Inc., Mondial Medical Technologies, Maria Francesca D. Tan, Christian Konstantin, Roxanne G. Agbayani, Enrique Eduardo D. Tan, Charles Edward D. Tan, and Luis Gabriel R. Cancio Jr., among other officials, across several banking and financial institutions.
“We find that there exists probable cause that the subject bank, securities, and insurance accounts may be related to violations of Section 8.1, Sections 26.1, 26.3, and Section 28.1 of the Securities Regulation Code, listed as an unlawful activity under Section 3(I)(33) of the AMLA, as amended,” the CA said.
In a separate resolution promulgated 17 May, the CA also allowed the AMLC to audit the bank, securities, and insurance accounts of the group for 120 days.
“Indeed, there is probable cause that the subject bank, securities, and insurance accounts stated herein may be related to violations of Section 8.1, Sections 26.1 and 26.3, and Section 28.1 of the Securities Regulation Code, listed as an unlawful activity under Section 3(i)(33) of the AMLA, as amended,” the CA ruled.
The freeze and bank inquiry orders followed a determination the MFT Group solicited investments without the necessary license from the Securities and Exchange Commission.
The MFT Group promised guaranteed returns ranging from 12 percent to 18 percent of the amount invested. This was perpetuated through the issuance of post-dated checks reflecting 1 percent to 1.5 percent monthly interest to investors who were given a promissory note or borrower-lender documents as proof of their investment.
Prior to this, the SEC filed a criminal complaint against MFT Group and Foundry Ventures for unauthorized investments as well as misrepresentations in the groups’ financial statements.
The SEC also made permanent a cease and desist order against MFT Group and its officers and directors, enjoining them to stop all activities related to the illegal solicitation of investments from the public.
