SEC revokes registration of Pigdeals International

MANILA, Philippines — Ponzi schemes in the Philippines are still prevalent, prompting the Securities and Exchange Commission (SEC) to revoke the registration of another company whose activities resemble a Ponzi scam.

In a recent order, the SEC cancelled the corporate registration of Pigdeals International Holdngs Inc. for its unauthorized investment taking activities.

The Enforcement and Investor Protection Department (EIPD) issued the order on March 15 after an investigation showed Pigdeals was selling securities to the public without the necessary secondary license from the SEC.

Pigdeals offered investment packages worth P2,500 each, supposedly to cover the costs of raising and selling one piglet, with a promised net profit of 80 percent or P4,500 after three months.

This was despite not having the license to operate agricultural lands, animal farms, and ranches, among others, from the Bureau of Animal Industry.

According to the SEC, Pigdeals’ scheme is “clearly in the nature of a Ponzi scheme where the profits or payouts shall be taken from the incoming investor or additional pay-ins of existing members-investors considering that it does not have any underlying legitimate business from where it could source its promised return on investments to its investors.”

SEC said Pigdeals committed an ultra vires act prohibited under Section 44 of the Revised Corporation Code of the Philippines.

The SEC advised the public against dealing with Pigdeals and other similar entities as early as October 15, 2019 through an advisory.

Instead of refuting the advisory, Pigdeals started to wind down its business activities until eventually abandoning its office in Metrowalk, Pasig City in the latter half of 2019.

The EIPD then issued a show cause order against Pigdeals on Nov. 11, 2020, directing the company to explain why its corporate registration should not be revoked. The order, however, was not served upon Pigdeals’ registered principal office address as it had already been vacated.