By Shiela Bertillo
The Securities and Exchange Commission (SEC) released an advisory to the public to be cautious when transacting with individuals or groups soliciting investments for and on behalf of FUTURE FARMING/FUTURE FARMING ICD/FUTURE FARMING FF STORE (“FUTURE FARMING”). This is in response to numerous reports received by the Commission regarding the activities of the firm.
The SEC is emphasizing that Future Farming is not registered as a corporation or partnership and is not authorized to solicit, accept or take investments from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC) since it does not have a secondary license issued by the Commission to solicit investments or other securities from the public for whatever purpose as prescribed under Sections 8 and 28 of the SRC.
According to the SEC, Future Farming is an app/webpage application/virtual farm where investors grow, harvest and sell their products such as Vegetables, S-Vegetables and Chickens with corresponding tasks. However, investors would first need to have a Binance account with at least $10 required balance before they can start growing their vegetables and chickens in their virtual farms.
“Initially, an investor can start investing in Vegetables for as low as $10 to purchase 0.5kg of seeds. To earn, the investor needs to complete the task by watering the vegetables three (3) times a day for 3 days, between 9am to 9pm, with the interval of three (3) hours. Your $10 will turn to $11 or 10% of your investment after three (3) days. The second product is the S-vegetables priced at $70 for 5kg of seeds. You are tasked to water the plants three (3) times a day for ten (10) days with the interval of three (3) hours between 9am to 9pm. After ten (10) days, your $70 will turn to $90 or 29% of your investment. Lastly, you can also invest in their chicken products. Purchase 200 chickens for $600, feed them three (3) times a day with the interval of three (3) hours between 9am to 9pm. In thirty (30) days, your $600 will turn to $1400 or 133% of your investment,” the Commission explained.
The SEC points out that the scheme of Future Farming partakes of the nature of offering and sale of securities in the form of investment contracts to the public, which requires, as per the SRC, any offer and sale of securities must be duly registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public. Future Farming nor individuals related to it, as stated, are not registered with the SEC.
“Further, the scheme employed by FUTURE FARMING, shows indication of a possible “Ponzi Scheme” where monies from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors,” the Commission wrote.
The SEC stated that offering and selling of securities in the form of investment contracts using the “Ponzi Scheme” which is fraudulent and unsustainable, is not a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.
“In view thereof, the public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of FUTURE FARMING. The public is further advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by aforesaid entities/individuals,” the SEC stressed.
The Commission also added a disclaimer that “FUTURE FARMING/FUTURE FARMING ICD/FUTURE FARMING FF STORE based in Pandi, Bulacan are NOT AFFILIATED with Future Farming based in Dubai, founded by ICD (Dubai Investment Corp.) and Grain Corp. (Ausralian Grain Co., Ltd.)”
This article is published on BItPinas: SEC Issues Advisory Against “Future Farming”