SEC cancels Katuwang Poultry's registration over illegal online investment solicitations

ABS-CBN News

Posted at Aug 10 2022 12:37 PM

MANILA - The Securities and Exchange Commission on Wednesday said it has revoked the registration of Katuwang Poultry Chicken Egg Producing Co for illegally soliciting investments from the public online.

Katuwang Poultry has been offering investment packages worth at least P50,000 with promised returns of 48 percent to 120 percent within 6 months, the SEC said in a statement. 

Investors can also earn referral commissions with 10 percent for every new member.

“Based on the evidence gathered, Katuwang Poultry is engaged in the offering, solicitation and sale of securities to the public without the required registration statement duly filed and approved by the SEC,” the order read.

The SEC Enforcement and Investor Protection Department (EIPD) found that Katuwang Poultry has been publicly offering securities through Facebook, without the necessary license, it said.

In allowing members to discuss, orient and make the public familiar with the scheme and inviting them through its Facebook page "constitutes public offering" which should be registered, it added.

The activities are considered "serious misrepresentation" and a ground for the revocation of a partnership's certificate of registration under Presidential Decree No. 902-A, the order said.

Activities were also likened to a Ponzi scheme, the SEC said.

“The investment scheme of Katuwang Poultry also operates to defraud investors as it deceives the investing public by making it appear that it has the authority to deal in securities,” the EIPD said.

“This amounts to serious misrepresentation as to what it can do or is doing to the damage and prejudice of the investing public," it added.

Investment contracts must be registered with the SEC before they can be sold or offered within the Philippines, pursuant to Section 8 of Republic Act No. 8799 of the Securities Regulation Code, the agency said.

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