THE Securities and Exchange Commission (SEC) said it revoked the business registration of Katuwang Poultry Chicken Egg Producing Co. for selling unauthorized securities.
The SEC found that the company offered shares in the company to the public without registering the offer with the commission, in violation of Sections 8.1 and 28.1 of the Securities Regulation Code.
Section 8.1 prohibits the sale, offer, or distribution of securities without registering them and obtaining approval from the commission.
Section 28.1 regulates which persons may engage in buying or selling securities as a broker or dealer, or as a salesman.
Katuwang Poultry, organized as a producer of eggs, was found to have invited the public to invest in the company without the necessary licenses to sell or offer shares of stocks and other investment-taking schemes. It also promised high returns in as little as six months, and offered subscribers a 10% referral commission for bringing in other investors.
“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 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 commission added. — Justine Irish D. Tabile