SEC: Ground Zero Poultry Connected with 2 Other Ponzi Firms

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  • The Securities and Exchange Commission (SEC) has issued a public advisory warning about Ground Zero Poultry Agricultural Corporation and its unregistered investment scheme.
  • The company is persuading the public to invest in its poultry farm ventures, promising a guaranteed return on investment of 60% for six months or 80% for a year for an investment of ₱20,000 (approximately $426).
  • The SEC has warned that the company’s scheme is a Ponzi scheme, and that all individuals involved in selling or promoting the scheme, including via the internet, could face criminal charges and fines of up to ₱5 million (approximately $106,000) or imprisonment of up to 21 years, or both.

Upon investigation, the Securities and Exchange Commission tagged Ground Zero Poultry Agricultural Corporation on its public advisory after finding out that the entity is enticing the public to invest in its unregistered scheme. 

The scheme of Ground Zero Poultry Agricultural Corporation is to persuade the public to invest in its poultry farm pursuits worth ₱20,000.00 and earn a 60% guaranteed return on investment (ROI) for six months or an 80% guaranteed ROI for a year. 

“In this regard, the public is made aware that an ’investment contract’ which is a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, which is prominent in the scheme of GROUND ZERO POULTRY AGRICULTURAL CORPORATION,” the regulatory agency explained. 

SEC Advisory vs Ground Poultry Agricultural Corporation

Securities sold in the form of investment contracts are required to be registered with the SEC as mandated by the Securities Regulation Code (SRC), and the concerned entity and its agents should also have the appropriate registration and license to sell such securities to the public. 

As per the Commission’s records, Ground Zero Poultry Agricultural Corporation was registered as a corporation on November 29, 2021, but this registration does not permit the entity to issue, sell, or offer securities to the public or undertake business activities requiring a secondary license.

“GROUND ZERO POULTRY AGRICULTURAL CORPORATION is not authorized to solicit investments from the public as this entity did not secure prior registration and/or license to solicit investments from the Commission as prescribed under Sections 8 and 12 of the Securities Regulation Code,” the SEC emphasized. 

The country’s regulatory agency also labeled Ground Zero Poultry Agricultural Corporation’s scheme as Ponzi because it probably uses the money of new investors to pay the “fake profits” of old investors. 

But the plot of the story continued to thicken when the Commission also found out that Ground Zero Poultry Agricultural Corporation is connected to two other firms, which the SEC had previously also tagged as Ponzi—the Hustlin Bullies and Ground Zero Poultry. 

Last September 14, 2021, the SEC released an advisory against Hustlin Bullies for promising a 48% guaranteed ROI for an investment worth ₱20,000.00 for six months, similar to the scheme of the entity discussed above.

While on February 8, 2022, the SEC released an advisory against Ground Zero Poultry for promising the same profit as the scheme of Hustlin Bullies, which is again similar to the scheme of Ground Zero Poultry Agricultural Corporation.

With this, the Commission is warning all individuals who act as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers, and enablers involved in Ground Zero Poultry Agricultural Corporation in selling or convincing people to invest in the investment scheme, including soliciting investments or recruiting investors through the internet, may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of ₱5 million or imprisonment of 21 years or both.

The regulatory agency also highlighted that all the individuals involved in the scheme of Ground Zero Poultry Agricultural Corporation will be reported to the Bureau of Internal Revenue (BIR) so that appropriate penalties and taxes will be assessed.

“In view thereof, the public is hereby advised to STOP INVESTING in the investment scheme being offered by GROUND ZERO POULTRY AGRICULTURAL CORPORATION, and its representatives,” the SEC’s final verdict read.

This article is published on BItPinas: SEC: Ground Zero Poultry Connected with 2 Other Ponzi Firms

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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