The Securities and Exchange Commission (SEC) said the Court of Appeals (CA) has extended the freeze order over the bank, investment, and insurance accounts of Maria Francesca Tan (MFT) Group of Companies Inc. for six months.
This follows after the court denied the group’s motion for the lifting of the freeze order. The order will now be in effect until November 9
In granting the extension, the CA noted the freeze order will give the government the necessary time to prepare its case and file the appropriate charges without worrying about the possible dissipation of the assets that could be related to suspected illegal activities, the SEC said.
The CA initially issued the freeze order on May 13, upon finding probable cause that the group’s assets were related to an unlawful activity.
The freeze order covers a total of 138 bank accounts, four securities accounts, and four insurance accounts bearing the names of the MFT Group, Foundry Ventures I, Inc., Mondial Medical Technologies and officials, across several banking and financial institutions.
Investigations by the SEC showed MFT Group promised guaranteed returns ranging from 12 percent to 18 percent of the amount they invested, which was considered as interest income.
The Group issued post-dated checks reflecting a 1 percent to 1.5 percent monthly interest to interested investors who were given either a promissory note or borrower-lender agreement, as proof of their investment.
The SEC subsequently filed a criminal complaint against MFT Group and Foundry Ventures for its unauthorized investment scheme, as well as misrepresentations in the groups’ financial statements. The SEC also made permanent a cease and desist order against MFT Group and its officers and directors, enjoining them to stop all activities related to the illegal solicitation of investments from the public.
