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KATUWANG POULTRY CHICKEN EGG PRODUCING CO.
KATUWANG POULTRY CHICKEN EGG PRODUCING CO. is NOT AUTHORIZED to solicit investments from the public since it has not secured prior registration and/or license from the Commission

Date Posted: 21 September 2021

KATUWANG POULTRY CHICKEN

KATUWANG POULTRY CHICKEN

SEC Facebook

Based on numerous reports and information gathered by the Commission, the
entity operating under the name
KATUWANG POULTRY CHICKEN EGG
PRODUCING CO.
through its partners,
MANNY NUQUE FERNANDEZ, PHILIP L.
MERCADO
and
NESTOR CASTRO
is found to be engaged in investment

taking
activities in the Philippines which is
NOT AUTHORIZED
by the Commission.
Based on the information gathered from the said reports, inquiries, and data
from open sources such as the social media sites, KATUWANG POULTRY CHICKEN
EGG PRODUCING
CO.
is apparently promising its prospective investors of
up to
120% in profit in just only
six months
depending on the amount of the initial
investment.
As posted online at its
own Facebook page, KATUWANG POULTRY CHICKEN
EGG PRODUCING
CO.
offers four (4) types of investment options or levels
, all of
which have
an option for the investor to e
arn 10% more in earnings from commissions
through referrals. The first package offered starts with an ini
tial investment of
P50,000.00 as
minimum with a promised profit of 48% in just six months. The biggest
package offered by KATUWANG POULTRY CHICKEN EGG
PRODUCING
CO.
starts
with an initial investment of P500,000.00 or more with a promised profit of 120% in just
six months
To wit:
The lock

in program of six months is basically how the
investors earn passive
income where the investor need not exert any effort except from investing money.
Hence, from the promise of 48% to 120% profit in just 6 months without any concrete
business plan, it can be inferred that the income of its investors
depends on
subsequent investors which ultimately defeats sustainability because its whole system
depends entirely on the new investors that will be lured in.
Applying the
Howey Test
,
1
KATUWANG POULTRY CHICKEN’s investment taking scheme or its so

called
“earn 48

120% in 6
months”
program partakes of the nature of securities in the form of
an investment
contract because it involves the offering and sale of securities to
the public where their
investors need not exert any effort other than to invest or place money in its scheme
in order to earn profit.
Briefly, an “
investment contract”
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 are prominent on KATUWANG
POULTRY CHICKEN EGG PRODUCING CO.’s scheme.
Therefore,
KATUWANG POULTRY CHICKEN EGG PRODUCING
CO. must
be duly registered with the Commission and t
hat any person or entity intending to offer
and sell its investment contract are required to secure the necessary registration
and/or license from the Commission as well.
Per our record, although
KATUWANG POULTRY CHICKEN
has been
REGISTERED
with the Commission as a partnership
on
01 June 2021
under Company Registration No. PG202106004
,
it
OPERATES
WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY
to solicit, accept or
take investments/placements from the public nor to issue investment
contracts and
other forms of securities defined under Section 3 of the Securities Regulation Code
(SRC)
.
Hence, the public is advised
NOT TO INVEST
or
STOP INVESTING
in any
scheme offered by
KATUWANG POULTRY CHICKEN EGG PRODUCING
CO.
or
1
Power Homes Unlimited vs. SEC
(G.R. No. 164182, February 26, 2008).
such other
entities engaged in investment taking schemes that are not registered with
the Commission.
Accordingly, the Commission warns all unscrupulous individuals and/or entities
that
strict penalties are imposed for violations of the Securities Regulation Code,
t
he Revised Corporation Code, and such other rules and regulation enforced by
the Commission
.
Those who act as salesmen, brokers, dealers or agents of
such unauthorized
entities like the operators of the Facebook Page of
KATUWANG POULTRY CHICKEN
. in selling or convincing people to invest in
their investment scheme offered including solicitations and recruitment through the
internet may likewise be criminally prosecuted and penalized with a maximum fine of
Five Million pesos (P5,000,000
.00) or a penalty of Twenty

one (21) years of
imprisonment or both pursuant to Sections 28 and 73 of the SRC.
In the same manner, those who invite or recruit others to join or invest in such
ventures
or offer investment contracts or securities to the public may incur
criminal
liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme
Court in the case of
SEC vs. Oudine Santos
(G.R. No. 195542, 19 March 2014).
The names of
all those involved will also be reported to the Bureau of Internal
Revenue (BIR) so that the appropriate penalties and/or taxes be assessed
correspondingly.
Should you have any information regarding any investment solicitation activity
by any individual o
r group of individuals representing
KATUWANG POULTRY CHICKEN
, please send your report to the EIPD at
[email protected].
For the guidance of the public.
Pasay City,
21 September 2021