CA orders freezing of MFT Group bank accounts, assets

MANILA, Philippines — The bank accounts and other assets of Maria Francesca Tan (MFT) Group of Companies Inc. have been ordered frozen by the Court of Appeals (CA) upon finding probable cause that they were linked to unlawful activities.

The CA, in a resolution promulgated on May 13, ordered the freezing of the MFT Group’s bank, securities and insurance accounts for a period of 20 days following a petition of the Anti-Money Laundering Council (AMLC).

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, Maria Francesca Tan and other officials across several banking and financial institutions.

Under Section 10 of the Anti-Money Laundering Act (AMLA) of 2001, the CA may issue a freeze order upon a verified ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity.

“We find that there exists probable cause that the subject bank, securities and insurance accounts may be related to violations of Section 8.1, Sections 26.1, 26.3 and Section 28.1 of the SRC, listed as an unlawful activity under Section 3(I)(33) of the AMLA, as amended,” the CA held.

A separate CA resolution promulgated on May 17 granted the ex parte application of the AMLC for a bank inquiry order, authorizing the council to inquire into or examine the bank, securities and insurance accounts of the group within a period of 120 days.

The freeze and bank inquiry orders were issued after the MFT Group was found to be soliciting investments from the public without the necessary licenses from the Securities and Exchange Commission (SEC).

The SEC earlier filed a criminal complaint against MFT Group and Foundry Ventures for their alleged unauthorized investment scheme, as well as misrepresentations in the groups’ financial statements.

Further, the commission 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.

According to the SEC, the MFT Group promised guaranteed returns ranging from 12 to 18 percent of the amount they invested, which was considered as interest income.

It said the scheme was perpetuated through the issuance of post-dated checks reflecting a one 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.