The Securities and Exchange Commission (SEC) said Sept. 15 that it has issued cease and desist orders (CDO) against Nego Food Solution Corp. and Uptrade Alliance for engaging in unauthorized solicitation of investments from the public.
In separate orders, the SEC Enforcement and Investor Protection Department (EIPD) directed Nego Food Solution and Uptrade Alliance, including their officers, representatives, dealers, and any and all persons acting for and, in their behalf, to immediately cease and desist from selling or offering unregistered securities in the form of investment contracts without the necessary registration and licenses from the Commission.
The two entities were also prohibited from transacting any business involving funds in their depository banks, and from transferring, disposing or conveying all assets and properties under their control to preserve such assets for the benefit of the investors.
Both entities were also directed to cease their internet presence relating to the transactions and investment scheme covered by the orders, the SEC said in a press release.
Investigation by the EIPD showed that Nego Food Solution and Uptrade Alliance were engaged in soliciting investments from the public without the necessary licenses and authority from the Commission. Uptrade Alliance is likewise not registered with the SEC as a corporation or partnership.
Nego Food Solution offers co-ownership agreements to its investors related to the establishment and operation of food outlets by paying P849,000, with a promised passive income quarterly.
Uptrade Alliance, meanwhile, entices the public to invest amounts ranging from P300 to P1,000, with guaranteed returns of 12 percent after five days and up to 60 percent after 15 days. It was also found operating an online platform to facilitate crypto-asset trading activities.
Section 8 of Republic Act 8799, or the Securities Regulation Code (SRC), forbids the selling, offering, or distribution of securities without a registration statement duly filed with and approved by the Commission, while Section 28 requires all persons engaged in buying or selling securities to register with the SEC as a broker, dealer, or salesperson.
The unauthorized investment schemes of Nego Food Solution and Uptrade Alliance also constitute investment fraud under RA 11765, or the Financial Products and Services Consumer Protection Act, the SEC added. ||
