THE Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Melot’s Catering Services and its operator, Mary Rose Reales Ceprino, directing the business to immediately stop offering unregistered investment contracts to the public.
The SEC’s Enforcement and Investor Protection Department (EIPD) said the catering business enticed individuals to become “financiers” or “investors,” supposedly to fund the expansion and renovation of its kitchen operations.
The scheme reportedly required a minimum investment of P50,000 and promised a guaranteed monthly return of 10 percent for a period of six to 12 months.
The SEC said the investment offers were promoted through Facebook and were supported by so-called “investment contracts” and the issuance of post-dated checks.
The commission noted that Melot’s Catering was not registered either as a corporation or partnership and had not secured the necessary license to offer or sell securities nor filed any registration statement for the investment products it was offering.
The SEC said the activities constitute the sale of unregistered securities in violation of the Securities Regulation Code.
Despite an earlier advisory issued on Oct. 29, 2025 warning the public not to invest in the scheme, the operator allegedly continued soliciting funds online.
The regulator said the investment offering bore the characteristics of an “investment contract” under the so-called Howey Test, as it involved pooling funds from investors with the expectation of profits derived primarily from the efforts of others.
“Applying the foregoing parameters... the EIPD finds reasonable grounds to believe that the investment schemes constitute an offer/sale of unregistered securities as all the elements of the Howey Test are present,” the order states.
Melot’s Catering, Ceprino and all associated individuals, including agents, promoters, and influencers, to immediately stop offering or selling such investments.
They were also directed to take down all online content related to the scheme and were prohibited from transacting business involving funds in their bank accounts, as well as from transferring or disposing of assets, without prior approval from the commission.
The SEC said it may pursue administrative and criminal charges as the activities may constitute financial fraud under the Financial Products and Services Consumer Protection Act.