The Securities and Exchange Commission (SEC) has issued a Cease and Desist Order (CDO) against Melot’s Catering Services and its proprietor, Mary Rose Reales Ceprino, for the unauthorized and illegal solicitation of investments from the public.
The SEC Enforcement and Investor Protection Department (EIPD) directed the entity and its agents to immediately halt the sale and offering of unregistered securities.
The Commission further ordered the immediate removal of all online promotional materials related to the scheme and prohibited the entity from disposing of any assets or withdrawing funds from depository banks to ensure the protection of affected investors.
The EIPD launched an investigation following reports that Melot’s Catering was enticing individuals to act as “financiers” or “investors.” The funds were ostensibly intended to support the expansion and renovation of the business’s kitchen facilities.
Key findings from the investigation include:
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Lack of Registration: Melot’s Catering Services is not registered as a corporation or partnership with the SEC.
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Unauthorized Securities: The entity lacks the required secondary license to solicit investments or sell securities to the public.
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Unrealistic Returns: The scheme promised investors a 10% monthly interest on a minimum investment of ₱50,000, spanning a contract period of six to 12 months.
The SEC underscores that “investment contracts” must be registered with the Commission to ensure transparency and legal compliance. By operating without these permits, Melot’s Catering has bypassed critical consumer protections designed to prevent fraud.
“To preserve the assets for the benefit of investors, the Commission has prohibited Melot’s Catering Services from transacting any business involving its depository funds and from transferring or conveying any real or personal assets,” the order stated.
The SEC advises the public to exercise extreme caution when approached with “guaranteed” high-return investment opportunities, especially those promoted via social media. The Commission remains committed to rooting out unauthorized investment schemes to maintain the integrity of the Philippine financial system.
Investors who have been approached by Melot’s Catering Services or similar entities are encouraged to report these activities to the Enforcement and Investor Protection Department.
