Freeze Order Over MFT Group Bank Accounts Extended

The Court of Appeals (CA) has extended the freeze order over the bank, investment, and insurance accounts of Maria Francesca Tan (MFT) Group of Companies, Inc. for six months, in order to protect the public from the group’s unlawful acts.

In a resolution promulgated on May 30, the appellate court resolved to deny the motion to lift filed by the MFT Group and to grant the extension of the freeze order over the company’s bank, securities, and insurance accounts to November 9, 2024.

In granting the extension, the CA noted that the freeze order will give the government the necessary time to prepare its case and file the appropriate charges without worrying about the possible dissipation of the assets that could be related to suspected illegal activities. 

“A freeze order is an extraordinary and interim relief issued by the CA to prevent the dissipation, removal, or disposal of properties that are suspected to be the proceeds of, or related to, unlawful activities as defined in Section 3(i) of [Republic Act] No. 9160, as amended,” the appellate court held.

“Based on the surrounding facts and circumstances, we cannot rule out the possibility that the subject bank, securities, and insurance accounts and the related and materially-linked accounts may have been used for the Ponzi scheme,” according to the CA.

The CA initially issued the freeze order on May 13, upon finding probable cause that the group’s assets were related to an unlawful activity. 

The freeze order covers a total of 138 bank accounts, four securities accounts, and four insurance accounts bearing the names of the MFT Group, Foundry Ventures I, Inc., Mondial Medical Technologies, Maria Francesca D. Tan, Christian Konstantin, Roxanne G. Agbayani, Enrique Eduardo D. Tan, Charles Edward D. Tan, and Luis Gabriel R. Cancio, Jr., among other officials, across several banking and financial institutions.

Under Section 10 of Republic Act No. 9160, or the Anti-Money Laundering Act (AMLA) of 2001, as amended, the CA may issue a freeze order upon a verified ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity.

Fraudulent practices and other violations under Republic Act No. 8799, or The Securities Regulation Code (SRC), are among the predicate offenses of money laundering.

Investigations by the SEC showed that the MFT Group promised guaranteed returns ranging from 12% to 18% of the amount they invested, which was considered as interest income.

The scheme was perpetuated through the issuance of post-dated checks reflecting a 1% to 1.5% monthly interest to interested investors, who were given either a promissory note or borrower-lender agreement, as proof of their investment.

The SEC subsequently filed a criminal complaint against MFT Group and Foundry Ventures for its unauthorized investment scheme, as well as misrepresentations in the groups’ financial statements. The Commission likewise made permanent a cease and desist order against MFT Group and its officers and directors, enjoining them to stop all activities related to the illegal solicitation of investments from the public.