SEC files criminal charges against Organico Agribusiness

The Securities and Exchange Commission (SEC) this week filed criminal complaints against Organico Agribusiness Ventures Corp. for offering securities to the public without the necessary permits.

The corporate regulator said it filed criminal complaints against Organico and several of its officials before the Department of Justice (DOJ) on Monday, September 9.

Among officials facing complaints are Organico Agribusiness president Cerrone Roial Posas, corporate finance officer Marve Subere Posas, corporate secretary Anthony Butaslac, and members of the Board of Directors Renato Subong and Karen Maasin.

They violated Section 8 of the Securities Regulation Code, which mandates all securities for sale and distribution to be registered and approved by the commission, the SEC said Wednesday.

“SEC on May 21 posted a public advisory stating that Organico is not authorized to offer, sell or distribute any investment/securities for lack of secondary license,” it said.

“The commission has also issued a cease and desist order on May 28 against Organico along with its president, partners, officers, directors, agents, representatives, conduits, assigns, from engaging in activities of selling or offering for sale securities in the form of investment contract.”

The corporate regulator said it charged agents and representatives Kathleen Hortesano, Rochelle Camacho, and Annielyn Hilotin for “acting as salesmen” of Organico and offering and selling securities.

The SEC said Organico’s scheme involves assurances that investors would have a return of 66.67% in 90 days without having to do anything other than invest and receive the promised payment.

Investors who paid P3,600 would be able to receive P6,000.

Under the Securities Regulation Code, violators face fines ranging from P50,000 to P5 million, or imprisonment of seven to 21 years, or both.

“Considering that the offer and sale of investment contracts by the respondents were facilitated and perpetrated through the use of social media networking and video-sharing websites, in particular, Facebook and YouTube, the penalty to be imposed should be one degree higher than what is prescribed by the SRC,” said the commission noted. —Jon Viktor Cabuenas/VDS, GMA News