Maria Francesca “Mica” Tan —MFT GROUP PHOTO
The embattled MFT Group led by CEO Maria Francesca “Mica” Tan promised to cooperate with the Securities and Alternate Fee (SEC) after the regulator ordered the corporate to halt an unlawful sale of funding contracts to the general public.
“MFT Group takes all regulatory issues critically and is dedicated to upholding the best requirements of authorized and moral conduct. We’re assured that after we’ve reviewed the specifics of the SEC’s issues, we can handle them promptly and responsibly,” the MFT Group mentioned in an announcement on Friday.
“Within the meantime, we want to emphasize that MFT Group has a powerful observe document of compliance with securities rules. We function with transparency and integrity, and we’re dedicated to working cooperatively with the SEC to resolve this matter,” it added.
‘Illegal solicitation’
On Thursday, the SEC directed the MFT Group and Foundry Ventures to “instantly stop and desist from additional participating within the illegal solicitation, provide, and/or sale of securities within the type of funding contracts with out the required license from the SEC.”
The businesses have been additionally barred from additional transacting with depository banks to guard the property of buyers.
READ: SEC orders Mica Tan’s MFT Group to cease unlawful sale of investments
The difficulty stemmed from a number of complaints filed earlier than the SEC’s enforcement and investor safety division alleging that Tan’s group had been falling behind on funds for years now.
Tan, who was named within the SEC order alongside the opposite administrators and officers of the agency, grew to become a celeb of types in enterprise circles after MFT ventured into numerous companies together with Saladstop! Vietnam, Mondial Kidney Care Middle and Mimi & Bros restaurant.
Promissory notes
In response to the regulator, the securities—bought by way of public occasions—have been within the type of borrower-lender agreements that later grew to become promissory notes.
The agency allegedly promised these buyers a assured return of 12 % to 18 % per yr, issuing postdated checks for quantities that will later “not be paid.”
“We’re assured that, as soon as we’ve had the chance to totally assessment the small print of the SEC’s order, we can reveal our dedication to accountable enterprise practices and regulatory compliance,” MFT Group added.
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