The Securities and Exchange Commission (SEC) has ordered EF Easy Franchise Technological Ventures, Inc. and several of its officers and affiliates to stop offering and selling what regulators described as unregistered securities through franchise investment arrangements, BusinessWorld reported.
In an order dated June 17, the SEC’s Enforcement and Investor Protection Department directed Easy Franchise to cease its investment solicitation activities, citing violations of the Securities Regulation Code. The regulator said the company’s franchise packages, which promised returns from business operations, constituted investment contracts that require registration.
The SEC warned the public against investing in Easy Franchise’s offerings, noting that unregistered securities expose investors to significant risks. The company has yet to issue a public response as of this writing.