DV Boer Farm Corporation Review and the case of SEC Advisory

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On April 30, 2019, the Securities and Exchange Commission (SEC) of the Philippines has issued two separate advisories against investing in two companies. One of the companies involved in the latest warning from the SEC is DV Boer Farm Corporation.

The Commission said that DV Boer Farm is not authorized to offer, solicit, sell or distribute any investment/securities. Such activities require a Secondary License from the SEC.  Likewise, the securities or investment product must be registered with Commission before these can be offered for sale to the public.

So, why did the corporate regulator think that DV Boer Farm is selling an investment product? Is the company’s operation illegal in the eyes of the authority?

In this article, we will answer these questions. But, before we do that, let’s have a quick background of the subject company.

Company Profile

Established in October 2014, DV Boer Farm Corporation operates an 11-hectare land in Balibago, Lian, Batangas. The farm is a breeding ground of full-blood Boer goats imported from Australia.

DV Boer Farm Corporation review.

The company said it educates and assists farmers in goat raising.  It takes pride as the “Country’s first commercial stud farm, unconditionally sharing superior genetics both for meat and milk types of goats and thru our PROFITABLE GOAT BUSINESS PROGRAM FOR BEGINNERS, successful goat business venture is now within the reach of every Juan.” Source

Mr. Soliman Alaer “Dexter” Villamin Jr., a former Pastry Chef, founded DV Boer Farm. The company’s contact numbers and addresses were showed visibly on their official website.

DV Boer Farm Corporation contact numbers and addresses

The firm offers Pa-iwi (Pa-alaga) Program at different prices with different terms and conditions.

What is Pa-iwi Program and How it Works

Pai-wi Program is when DV Boer Farm collects your money as payment for various farm animals. You will not raise the livestock yourself. It will be the company which will do that on their farm.

The reality is, you are trusting the company to raise and manage your farm animals. In return, both of you will split the profit based on the terms and conditions you agreed upon.

You have nothing to do. Just give your money to the company and wait for your payout.

It sounds like crowdfunding; soliciting investments from the public using the internet and using the same to finance a business venture. 

DV Boer Farm Pa-iwi Programs

Based on the information gathered by the SEC, DV Boer solicits investments from the public using the following “Pa-iwi Program.” Take note of the guaranteed and fix returns for each program.

Goat Dairy Pa-iwi Program

  1. A 36-month Pa-iwi
  2. Costs Php160,000.00.
  3. 15 heads of goats shall be purchased for the investor
  4. With the following payouts:
    • 12th month for Php22,500
    • 20th month for Php45,000
    • 28th month for Php45,000
    • 36th month for Php45,000
  5. Thereafter, a salvage value of Php75,000
  6. A total of 15% interest per annum.

Goat Meat Pa-Iwi Program

  1. A 35-month Pa-iwi
  2. Costs Php160,000
  3. 15 heads of goats shall be purchased for the investor
  4. The payouts will be received on the following:
    • 11th month for Php22,500
    • 19th month for Php45,000
    • 27th month for Php45,000
    • 35th month for Php45,000
  5. Thereafter, a salvage value of Php75,000
  6. A total of 15% interest per annum.

Chicken Breeding Program

  1. 18-Month Pa-iwi
  2. Costs Php100,000
  3. 100 heads of chicken shall be purchased for the investor
  4. The payout will be received at the 18th month in the amount of Php20,000 and after that, a salvage value of Php100,000.
  5. A total of 20% interest per annum.

Cattle Affineur Program

  1. A 1-year Pa-iwi
  2. Costs Php1,000,000
  3. 40 head of cows shall be purchased for the investor
  4. The payouts will be received on the 13th month in the amount of Php150,000.
  5. A return of 15% per annum.

Dairy Cattle Breeding Pa-iwi Program

  1. A 3-year pa-iwi
  2. Costs Php2,060,000.
  3. Five heads of the cows shall be purchased for the investor
  4. With the following payouts:
    • 12th month for Php600,000
    • 24th month for Php600,000
    • 36th month for Php600,000
  5. After that, a salvage value of the Php2,000,000
  6. A return of 30% per annum

Rabbit Pa-iwi Program

  1. 1-year Pa-Iwi program.
  2. Cost Php10,000.00.
  3. Three heads of rabbits shall be purchased for the investor.
  4. The payout shall be received at the end of the one year in the amount of Php900.
  5. After that, the salvage value of Php10,000 is also returned by DV Boer to the investor.
  6. A return of 9% per annum.

Why DV Boer Farm’s Investment Solicitation is Illegal

Crowdfunding is not allowed in the Philippines. Although the SEC had taken a step when it asked comments for proposed rules and regulations governing crowdfunding, there were no guidelines released yet.

Hence, the only legal way to solicit investments from the public is to comply with the requirements of the Securities Regulation Code (SRC).

Update: The SEC released the rules and regulations governing crowdfunding.  

Can you classify the Pa-iwi Program as security, hence compliance with the SRC is required? Yes, it’s a security based on Section 3.1 of the SRC.

Section 3.1 of the Securities Regulations Code

Specifically, Pa-iwi Program falls under the investment contract. An investment contract is defined under SRC Rule 26.3.5 of the 2015 Implementing Rules and Regulations (IRR) of the Securities Regulation Code as follows:

An investment contract means a contract, transactions or scheme (collectively “contract”) whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.

Pa-iwi Program as an Investment Contract

Let’s examine carefully the characteristics of the Pa-iwi Programs offered by DV Boer Farm to determine if they satisfy the elements of an investment contract.

  • A contract, transaction or scheme- An investor enters into Pa-iwi Program contract with DV Boer Farm.
  • Investment of money- An investor pays the corresponding amount based on the agreed contract of Pa-iwi Program.
  • A common enterprise- The money invested by the public goes to DV Boer Farm, which uses the same to buy farm animals and finance the operation.
  • The expectation of profits- People who invested expect profits or return of investments as agreed upon in the Pa-iwi Program terms and conditions.  
  • Profits arise primarily from the effort of others- After paying the capital, an investor has nothing to do except to wait for profit. Entrepreneurial and managerial efforts rest with the management of DV Boer.   

As you can see, the Pa-iwi Program satisfies all the elements of an investment contract. Thus, compliance with the SRC is required.

Before a company can issue securities, it must secure a Secondary License from the SEC. Also, the security must be registered with the Commission before it can be sold or offer for sale to the public.

DV Boer Farm Corporation failed to comply with the requirements of the SRC and its IRR. In effect, the securities regulator issued an advisory to the public to transact with caution with the said company.

Return of Investments in Pa-iwi Programs

There is no doubt. DV Boer offers high returns compared to other alternative investments. However, did the enterprise paid back its investors as promised?

Social media and blog posts are claiming that the company paid its guaranteed income.

However, do these investors understand how their capital grow? Are they confident that their income came from the money they invested and not from the pocket of other investors?

They can only say so unless they have access to DV Boer Farm’s records. Until then, there is a chance that the money they received as a return of their investment was taken from the new investors.

So, only invest what you can afford to lose!

DV Boer Farm Review Conclusion

Stay away with DV Boer Farm Corporation. An advisory issued by the SEC should alert you that there is something wrong with the company’s business model.

The company sells an investment contract which requires Secondary License and must be registered with the SEC before it can be sold or offer for sale to the public. The said entity failed to do these things. Thus, a warning to the public was issued by the Commission.

Is DV Boer a scam?

A scam is defined by the Cambridge Dictionary as “an illegal plan for making money, especially one that involves tricking people.”

Since, the company may have violated an investment law and its rules and regulations, in our opinion, DV Boer Farm Corporation is a scam.

If you are an investor of this company, we suggest you coordinate with the SEC for filing of appropriate charges.

Please share this review to someone you know and let them do the same. Do you have something to say? Hit us on Disqus comment section.

Other online scams that solicit money from the public are Paysbook, Unlishop, Unity Network, Unity Wealth, PlanProMatrix, Fast Track Worldwide, Pays-up Marketing, AIM Global, and KAPA.

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