THE Security and Exchange Commission (SEC) issued a warning to the public against investing in the unregistered Kamayo Seafoods Buffet and its affiliated entities.
In an advisory released on November 9, 2023, the SEC disclosed that these entities are enticing individuals to invest by promising substantial profits through a franchising and co-ownership program, purportedly guaranteeing monthly returns ranging from five to 15 percent.
The SEC said Kamayo Seafoods Buffet, Kamayo Seafoods Franchising and Co-ownership Program, and Kamayo Food Park Co-ownership Program are not registered with the commission.
This lack of registration prohibits them from offering, selling, or distributing any investments or securities to the public.
Such activities necessitate a special license from the SEC, and the securities or investment products must be registered with the SEC before being presented or sold to the public.
The advisory explicitly cautions the public against investing or continuing to invest in the schemes offered by Kamayo Seafoods Buffet/Kamayo Seafoods Franchising And Co-Ownership Program/Kamayo Food Park Co-Ownership Program or its representatives.
Additionally, the SEC advisory highlights that those involved in promoting or recruiting others to invest in these schemes may face criminal liability.
The Financial Products and Services Consumer Protection Act, along with Section 28 of the Securities Regulation Code, deems engaging in such activities as an offense.
The penalties for each offense include a maximum fine of P5 million a maximum prison term of 21 years, or both, as outlined in Section 73 of the Securities Regulation Code. These penalties are designed to safeguard consumers and uphold the financial system's integrity.
Moreover, individuals inviting or recruiting others to participate or invest in these ventures, or offering investment contracts or securities to the public, may also be held criminally liable.
The Davao City Anti-Scam Unit has urged Dabawenyos to exercise caution regarding the franchising and co-ownership program. ICE