The Securities and Exchange Commission (SEC) has revoked the registration of Katuwang Poultry Chicken Egg Producing Co. as a partnership for illegally soliciting investments from the public online.
In an order dated July 29, the SEC Enforcement and Investor Protection Department (EIPD) found that Katuwang Poultry has been offering securities to the public through Facebook, without the necessary license from the Commission.
The partnership’s activities constituted serious misrepresentation as to what it can do, to the great prejudice of or damage to the general public, a ground for the revocation of a partnership’s certificate of registration under Presidential Decree No. 902-A, according to the order.
The Commission warned the public against investing in Katuwang Poultry as early as Sept. 21, 2021, through an advisory.
Katuwang Poultry has been offering investment packages worth at least P50,000, with promised returns of supposedly 48 percent to 120 percent within six months, depending on the amount invested.
Investors were also offered referral commissions of 10 percent for every new member they invite into the system.
Katuwang Poultry’s scheme involves securities, particularly an investment contract, whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others, according to the EIPD.
As a form of security, investment contracts must be registered with the SEC before they can be sold or offered…
