Date Posted: 8 May 2019
LDT AGRO INDUSTRIAL
LDT AGRO INDUSTRIAL
The Securities and Exchange Commission has received information that individuals or group of persons representing LDT AGRO INDUSTRIAL HUB CORPORATION(“LDT”)through its president ARMANDO G. GABRIEL,in partnership with NUTRIWEALTH MULTIPURPOSE COOPERATIVE (“NMPC”)nowVCM-NW Corporation(“VCM-NW”), using other names such asVALUE CHAIN METHODOLOGY(“VCM”),VCM Network, VCM Network Livelihood Support Association(“VCM-LSA”), allwhich werefounded by JAY C. GALANG,is offering investmentonlineto the public through “THE BNP CLIENT PROJECT”via Facebook account also named THE BNP Client Project.Per records of the Securities and Exchange Commission, LDTisregistered in the Commission’s database asa stock corporation with company registration no. CS201820040. It was issued its certificate of incorporation on12 September 2018. Its primary purpose isto develop, manage, own, lease and operate agriculture-related facilities, rice milling, processing, distribution, wholesale, trading and other related services.On the other hand,VCM-NWis registered in the Commission’s database as a stock corporation with company registration no. CS201820903. It was issued its certificate of incorporation on 20 September 2018. Its primary purpose is to develop, manage, own, lease, and operate agricultural lands, farms, pasture lands, ranches, fishponds, fish pens, foreshore lands, and similar fishing rightsor concessions, including fish culture; to engage in the planting and cultivation of all crops, orchards, groves, and all types of agricultural or farm products; to engagein raising, breeding, cross-breeding and pasturing of cows, goats, carabaos, pigs, chickens, and other similar stocks, and in general to undertake or carry on all kinds of studies, experiments, cultivation, storage and trading in all kinds of agricultural, livestock, and fishery products and its by products, including distribution of these products through wholesale and retail trade.However, LDT and VCM-NWarenot authorized to solicit investments from the publicas the above-mentioned corporationsdid not secure prior registration and/or license to solicit investment from the commission as prescribed under Section 8 of the Securities Regulation Code. Based on information gathered, BNP stands forBIONUTRIGREEN PROCEDURE and CLIENT stands forConvergenceforLinking InvestorsandENTerprises. THE BNP CLIENT PROJECT isunder the leadership of LDTand VCM-NW, conceptualized as its flagship program which adheres to the vision: “Empower the Filipino Farmers and make High Quality Rice Available to all”.The investment scheme is described as follows:1)In joining LDT’s so-called advocacy, the investor fills out a Contract of Agreement termed as Purchase Agreementwitha lock in period of 5 years anda corresponding Non-Disclosure Agreement.
For easy reference, we quote the pertinent provision of the purchase agreementto wit:“xxx3.) The Client agrees with the following conditions:a) The amount paid will be locked-in for a five year commitment with corresponding incentive;b) The amount paid will receive 10% interest on its 1styear as incentive;c) The amount paid will receive 15% interest on its 2ndyear as incentive;d) The amount paid will receive 20% interest on its 3rdyear as incentive;e)The amount paid will receive 25% interest on its 4thyear as incentive;f) The amount paid will receive 30% interest on its 5thyear as incentive.xxx”2)In filling out the Purchase Agreement, the Investor has (3)ThreeOptionsto choose from:a)Option A: All Rice &No Cash BackHere, the investorgets the corresponding cavansof rice for the money paid.PURCHASE AMOUNTNUMBER OF CAVANS OF RICETOTAL CAVANS OF RICE10,0009920,000181830,000272740,000363650,0004545100,0009090500,0004514511,000,000901901b)Option B: Rice & RewardHere, thepurchase amount paidrelative tothe purchase agreementwill be returned as a reward plus the corresponding pre-purchased rice. PURCHASE AMOUNTNUMBER OF CAVANS OF RICERICE & REWARD10,000610K + 6 cavans20,0001120k + 11 cavans 30,0001730k + 17 cavans40,0002340k + 23 cavans50,0002850k + 28 cavans100,00056100k + 56 cavans500,000281500k + 281 cavans1,000,0005641M + 564 cavans
c)Option C: All CashHere, the money paid by investorsrelative tothe purchase agreementis doubled in 5 years.Allegedly, this option arose from the situation that certain individuals are not interested with having Rice, yet wishes to participate inLDT’sADVOCACY.These investors are called by LDT asAngel Investors.3)After filling out the documents, the investorpays the purchase amount to LDT’sBank Account. The investor then sendsthe scanned deposit slip together with the documents to LDT.4)LDT thentransmitsback to the investor the notarized documents within 7 working days.5)In summary, LDT collects payments from investors through THE BNP CLIENT PROJECT. The investors purchasethe rice at its Farm Gate Value. Thereafter, LDTfinances their Farmer-Client’s Farm cost up to year end. LDT buys the Farmer-Client’s produce higher than its prevailing farm gate value. LDT gives its investors High Quality Rice at a very affordable priceplus an option to earn 100% interest as reward. Accordingly, the public is hereby warned that such investment schemes are considered as investment contracts under the definition of securities in the SRC and subject to the regulatory authority of this Commission. The offering or sale of securities to the public without a permit or license from the Commission is a violation of Section 8.1. of the Securities Regulation Code (SRC).Sincethis scheme involves the sale of securities to the public, the SRC requires that the said securities offered are duly registered and that the appropriate license and/or permit to sell securities to the public are issued to the corporation and/or its agents, pursuant to the provisions of Section 8 of the SRC.Likewise, those who act as salesmen, brokers, dealers or agents of these companies in selling or convincing people to invest in the investment scheme being offered by LDTand VCM-NWincluding solicitations and recruitment through internet may likewise be prosecuted and held criminally liable under Section 28 of the SecuritiesRegulation Code and penalized with a maximum fine of Five Million Pesos (P5,000,000.00) or penalty of twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.PURCHASE AMOUNTREWARD10,00020,00020,00040,00030,00060,00040,00080,00050,000100,000100,000200,000500,0001,000,0001,000,0002,000,000
Therefore, those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing withLDT AGRO INDUSTRIAL HUB Corporation andVCM-NW Corporationor its representatives.Information as to whether these securities are registered or not may be sought from the SEC’s Corporate and Finance Department, or Market and Securities Regulation Department throughtelephone numbers (02)818-6103 and (02)818-5703 respectively.The Commission urges anyone who has knowledge or information about any business transaction involving these securities or investment opportunities to report such activity so that appropriate actions could be taken through the Enforcement and Investor Protection Department at (02)818-6337 or (02)818-6047.For the guidance of the public.3May2019
LDT AGRO INDUSTRIAL