MFT Group wants CDO lifted; decries frozen accounts
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The MFT Group of Companies is petitioning the Securities and Exchange Commission, or SEC, to automatically rescind a Cease and Desist Order, or CDO, related to loan transactions done by shareholders of its limited partner.
“How can the SEC resurrect and even make permanent a long-dead CDO? To do so would be highly anomalous and oppressive to MFT,” Atty. Estrella Elamparo, MFT Group’s spokesperson, said on Monday.
MFT Group filed an omnibus motion with the SEC on 8 March, citing the Enforcement and Investor Protection Department's failure to file its comment on time and the SEC En Banc's failure to resolve the motion within the mandatory 10-day rule.
The SEC issued a CDO on 16 January, accusing MFT Group of selling unregistered securities.
MFT filed a Motion to Lift the CDO on 23 January and withdrew it on 8 February.
The EIPD filed its opposition to lifting the CDO on 29 February, 16 days past the deadline, without providing any justification.
Since the automatic lifting of the CDO has already occurred, there is nothing more to make permanent, according to MFT Group.
Part of what the CDO restrains is any transaction in the bank accounts of the parties concerned, including their personal bank accounts.
“Perhaps it should be made clear that with each day that the bank accounts are frozen with no authority, the various businesses of MFT Group are severely crippled, and individual creditors and employees cannot get paid,” Elamparo contended.
During a recent Court of Appeals hearing where the SEC was summoned, it was revealed that the SEC had no authority to freeze bank accounts.
The SEC representative acknowledged that the CDO only pertains to MFT and the other respondents, but not the banks.
However, in a separate order, the SEC clarified that the CDO is not only addressed to the respondents but also to the public, including banks.
The DAILY TRIBUNE reached out to the SEC for clarification but did not receive any response as of press time.
