The Securities and Exchange Commission (SEC) is advising the public to stop investing in two online entities engaged in unauthorized lending activities.
In separate advisories issued on 30 October, the corporate regulator said Hybrid Gamefowl Holdings Inc. and Lion City Finance Group Inc. are not authorized to solicit investments from the public as the entities do not have prior registration and/or license from the commission, as required.
“Part of the scheme being employed by (Hybrid Gamefowl) is enticing the public to invest by paying for a minimum of two Texas chicken worth P998 in order to earn P3,000 after 90 days. Said Texas chicken are not actually delivered to the purchaser, but instead, the entity undertakes to pay the purchaser or investor the agreed amount within a specified date,” the SEC said.
Although Hybrid Gamefowl was registered with the SEC on 23 July 2019 based on the commission’s records, such scheme constitutes the offering and selling of securities to the public, an activity that requires separate license or permit from the commission as per the Securities Regulation Code (SRC).
The SEC said persons acting in behalf of the entity through the internet may be held criminally liable under section 18 of the SRC, and penalized with a maximum fine of P5 million or imprisonment of 21 years, or both.
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Additionally, the SEC said it also found that Hybrid Gamefowl is the same entity that operates Brix Gamefowl Breeding/Brix Ventures Inc./AB Eugenio Trading, which the SEC has earlier issued advisories against.
Meanwhile, the regulator in a separate advisory clarified that Lion City Finance Group is not authorized to solicit investments from the public as it also does not have prior registration or license to do so.
“It must be noted that acquiring a primary registration with the commission as a financing company is not a license or authority to solicit investment from the public because it only grants juridical personality to the corporation and to operate within its purpose only,” the SEC said.
It said Lion City’s investment scheme involves offering pure passive income of ten percent interest per month “supported by a Notarized Memorandum of Agreement and Investment Contract and secured with postdated checks.”
