THE Securities and Exchange Commission (SEC) has cautioned the public against investing in Eudor Group of Companies, Inc., which operates under several business names, including Fu Dalu Agricultural Products, Skinlogics Wellness and Beauty Center, and M. Textilis Plant Nursery, among others.
In an advisory dated Aug. 19, the SEC said the Iligan City-based company, registered under SEC No. 2023090115681-12, has been “enticing the public to invest in an unauthorized investment scheme that promises guaranteed monthly passive income ranging from 5% to 15%, along with a 10% discount on all services offered by its affiliated beauty clinic, Skinlogics Wellness and Beauty Center.”
The scheme, also offered through Fu Dalu Agricultural Products’ office in Sta. Filomena, Iligan City, reportedly includes three investment packages.
The first type offers a 5% monthly return on investment, paid every month.
The second type provides a 10% monthly return on investment under a one-year lock-in period, with the principal and total returns paid after one year.
The third type promises a 15% monthly return on investment under a three-year lock-in period, with the principal and total returns paid after three years.
The SEC noted that these offerings qualify as “investment contracts,” which are securities under the Securities Regulation Code (SRC).
The regulator said Eudor Group of Companies, Inc. is not authorized to solicit investments or sell securities to the public.
The scheme “appears to exhibit the characteristics of a Ponzi scheme,” the advisory added.
The SEC advised the public not to invest or to stop investing and warned that anyone acting as a promoter or recruiter for the scheme may face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC, with penalties of up to P5 million or 21 years imprisonment, or both.
The SEC said investors with information about Eudor Group or its representatives may report it to epd@sec.gov.ph or to the Cagayan de Oro Extension Office at sec-cdoeo@sec.gov.ph.
Eudor Group of Companies, Inc., Skinlogics Wellness and Beauty Center, and Fu Dalu Agricultural Products have yet to respond to BusinessWorld’s requests for comment sent by e-mail and through their publicly available contact information. — Alexandria Grace C. Magno
