THE Securities and Exchange Commission (SEC) has revoked the registrations and the certificates of incorporation of two more entities “for serious misrepresentation as to what the corporations can do to the great prejudice of or damage to the general public.”
In an order dated Dec. 31, the SEC said it revoked the registration of MassDrop Marketing and Franchising Opc and MDM Ventures Corp. after the regulator found that the two were offering schemes “clearly in the nature of a Ponzi scheme.”
A Ponzi scheme is an investment program that promises high returns, where old investors earn from the investment of newer recruits.
“The schemes offered by MDM Ventures are exactly the same as that of MassDrop’s,” the SEC said.
The two were offering an investment program where investors may earn a monthly return of 20% for 90 days, including additional returns on the third month, for a total of a 160% profit.
The SEC noted that “a member shall only need to invest, wait and earn without having to do anything.”
MassDrop is a one-person corporation that registered with the commission in February last year under company registration number 2021020006740-02. Meanwhile, MDM Ventures listed in June 2021 under company registration number 2021060015483- 11.
The commission issued an advisory to warn the public against MassDrop in May 2021. It issued a separate advisory against MDM Ventures the following month, stating that “the investment activities…