The Securities and Exchange Commission (SEC) has revoked the corporate registration of Pigdeals International Holdings Inc. for unauthorized investment-taking activities resembling a Ponzi scheme.
In an order dated 15 March, the SEC Enforcement and Investor Protection Department (EIPD) said the company has been selling or offering securities to the public without the necessary secondary license from the Commission.
The order pointed out that Pigdeals committed ultra vires act prohibited under Section 44 of the Revised Corporation Code of the Philippines.
The EIPD also found that Pigdeals did not have the license to operate agricultural lands, animal farms, and ranches, among others, from the Bureau of Animal Industry.
The EIPD explained that Pigdeals’ scheme was “clearly like a Ponzi scheme where the profits or payouts were taken from the incoming investor or additional pay-ins of existing members-investors considering that it does not have any underlying legitimate business from where it could source its promised return on investments to its investors.”
The SEC advised the public against dealing with Pigdeals and other similar entities as early as 15 October 2019, through an advisory.
Instead of refuting the advisory, Pigdeals started to wind down its business activities until eventually abandoning its office in Metrowalk, Pasig City in the latter half of 2019.
The EIPD then issued a show-cause order against Pigdeals in 11 November 2020, directing the company to explain why its corporate registration should not be revoked.
The order, however, was not served upon Pigdeals’ registered principal office address as it had already been vacated.
The supposed addresses of the incorporators were likewise proven to be either non-existent or incorrect.
Pigdeals offered investment packages worth P2,500 each, supposedly to cover the costs of raising and selling one piglet, with a promised net profit of 80 percent or P4,500 after three months.