Upholding the findings of the Securities and Exchange Commission, the Department of Justice (DOJ) has recommended the filing of criminal charges against Organico Agribusiness Ventures Corp. and its officers for soliciting investments from the public without prior authority.

Organico’s investment scheme involved the sale of a piglet for P3,600 each, with promised returns of P7,000 after three months. The company also engaged in crowdfunding activities through the internet where an investor should buy at least 10 shares worth P1,800 each, for a payout of P450 every 15 days or P2,700 in three months.

In an order dated Sept. 3, state prosecutors found probable cause to charge Organico, its president and chairman Cerrone Roial Posas, and officers Marve Subere Posas, Renato Subong, Anthony Butaslac, and Karen Maasin for violation of Sections 8, 26.3, and 28 of the Securities Regulation Code. in relation to Sec. 6 of the Cybercrime Prevention Act of 2012.

The DOJ also recommended the filing of a criminal case against Organico agents Kathleen Hortesano, Rochelle Camacho, and Annielyn O. Hilotin for offering and selling unauthorized securities to the public.

“(T)he business operations carried out by respondent Organico is in the form of a Ponzi scheme whereby purported returns to existing investors are culled from funds contributed by new investors. It is not an investment strategy but a gullibility scheme and which only works as long as there is an increasing number of new investors joining,” the DOJ said.

Section 8 of SRC provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC.

The DOJ also pointed out that records consistently showed that Organico constantly “made use of the Internet, through Facebook and Facebook Messenger applications, to further disseminate information regarding their fraudulent scheme,”

“By posting their offers of investments in their Facebook page and various group chats, they successfully reached a wider audience and was able to tempt or lure more victims to invest in their Ponzi scheme,” the DOJ said.

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Owners, officials behind Organico investment scam face criminal raps
Source: Filipino Daily Inquirer