The order, dated Aug. 20, 2024, directs F2M and its related entities to immediately stop offering or selling securities until they secure the necessary SEC registration and licensing.
The entities involved include F2M Tarlac City-Main Branch, F2M Paalaga System, Hog Raising Business, and various branches across Tuguegarao, La Union, and other provinces, the SEC said in a statement.
The SEC also extended the order to agents, sales representatives, and branches across the country, effectively halting operations in cities such as Baguio, Santiago, Laoag, and Davao.
F2M was found to be running a scheme under the “F2M 3 Months Paalaga System,” where investors were encouraged to purchase piglets for ₱5,000, with a promised return of ₱2,600 per piglet after three months, according to the SEC.
This scheme, offering a 52-percent return in three months, involved the sale of unregistered securities, violating Section 8.1 of the Securities Regulation Code.
The SEC classified the scheme as fraudulent, warning that it posed a risk of "grave or irreparable injury" to the investing public.
The SEC further classified the Paalaga System as a financial fraud under the Financial Products and Services Consumer Protection Act (RA No. 11765), which targets deceptive schemes like Ponzi operations.
The SEC's surveillance found that F2M’s Marikina address was fictitious, reinforcing its April 2024 advisory warning the public against engaging with F2M representatives.
