In an Oct. 9, 2024 order that was made public on Thursday, the SEC Enforcement and Investor Protection Department (EIPD) found the company in violation of multiple laws, including the Revised Corporation Code (RCC), the Securities Regulation Code (SRC), and the Financial Products and Service Consumer Protection Act.
F2M was fined P1 million, with its incorporator and nominee facing similar penalties, for offering unregistered investment contracts through its “3 Months Paalaga System.”
The Paalaga System lured investors with promises of a 30-percent return on investment for a P5,000 piglet purchase, or a projected P152,000 return for a P100,000 investment in 20 piglets after three months.
The SEC noted that F2M and its affiliates lacked registration as corporations or partnerships and operated without secondary licenses required to solicit investments.
The scheme was deemed fraudulent, akin to a Ponzi scheme, as returns depended solely on incoming investments rather than legitimate business operations.
Despite a public advisory on April 16, 2024, and a cease-and-desist order issued on Aug. 20, 2024, F2M continued its activities, prompting the SEC’s decisive action.
